A Firm Has 21,000 Shares of Stock Outstanding,sales of $927,000,a

question 13

Multiple Choice

A firm has 21,000 shares of stock outstanding,sales of $927,000,a profit margin of 4.8 percent,a price-earnings ratio of 6.2,and a book value per share of $5.80.What is the market-to-book ratio?

• A)1)67 times
• B)3)98 times
• C)4)27 times
• D)3)29 times
• E)2)26 times

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Definitions:

Producing Units

Producing units are individual entities, such as factories or plants, within an organization that are responsible for producing goods or services.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Marginal Revenue (MR)

The incremental earnings obtained from the sale of an additional good or service unit.

Marginal Cost (MC)

The increase or decrease in the total cost that arises when the quantity produced changes by one unit.