Use the Table for the Question(s)below

question 43

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:

• A)0.39.
• B)0.76.
• C)1.29.
• D)2.57.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but rather reinvested in the business or held as reserves.

Plant Expansion

The process of enlarging a company's physical facilities or increasing its production capacity.

Dividend Declarations

Official announcements by a company's board of directors to pay dividends to shareholders, specifying the dividend amount, record date, and payment date.

Retained Earnings

Profits that a company keeps or retains after paying out dividends to shareholders, used to reinvest in the business or pay down debt.