Problem 44 MarketBook Ratio Jaster Jets has 4 billion in tot

Problem 4-4 Market/Book Ratio Jaster Jets has $4 billion in total assets. Its balance sheet shows?0.2 billion in current liabilities $2.8 billion in long-term debt and $1 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $24 per share. What is Jaster\'s market/book ratio? Round your answer to two decma places

Solution

market value=shares outstanding*stock price

=300*24

=7200 million or 7.2 billion

book value=1 billion

market/book ratio=7.2/1

=7.20

the above is answer..