Swanton Foods Has a Book Value Per Share of $12

question 76

Multiple Choice

Swanton Foods has a book value per share of $12.68, earnings per share of $1.21, and a price-earnings ratio of 17.6. What is the market-to-book ratio?

• A) 1.32
• B) 1.68
• C) 1.99
• D) 2.47
• E) 2.61

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Capital Gain

The profit from the sale of a capital asset for more than its purchase price.

Strike Price

The fixed price at which the holder of an option can buy (call option) or sell (put option) the underlying security or commodity.

Call Options

Financial contracts that give the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain time period.