Use the Following Information for ECE Incorporated

question 23

Multiple Choice

Use the following information for ECE incorporated:

-If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding,then ECE's market-to-book ratio is closest to:

• A)0.24.
• B)4.
• C)6.
• D)30.

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Definitions:

Capital Budgeting

The approach taken by a business to appraise potential key projects or investments.

Equity Investment

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, primarily through the ownership of equity.

Separately Funded

A financial arrangement where specific projects or objectives are funded independently from an organization's main operating budget.

Dedicated Capital

Refers to funds allocated for a specific purpose or investment, typically involving long-term projects or goals.