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MARKET/BOOK RATIO Edelman Engines has $17 billion in total assets. Its balance sheet shows $1.7 billion...

MARKET/BOOK RATIO

Edelman Engines has $17 billion in total assets. Its balance sheet shows $1.7 billion in current liabilities, $9.35 billion in long-term debt, and $5.95 billion in common equity. It has 900 million shares of common stock outstanding, and its stock price is $22 per share. What is Edelman's market/book ratio? Round your answer to two decimal places.

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Answer #1

Book value per share=($5.95 billion/900 million shares)

=$6.61(Approx).

Market/book ratio=Market value/Book value per share

=22/6.61

=3.33(Approx).

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