Use the Following Information for ECE Incorporated

question 7

Multiple Choice

Use the following information for ECE incorporated:
Assets $200 million
Shareholders' Equity $100 million
Sales $300 million
Net Income $15 million
Interest Expense $2 million
-If ECE's shares are 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:

Private Corporation

A company owned by non-governmental organizations or a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing shareholders' ownership in the company.

Public Markets

Marketplaces, whether physical or electronic, that are accessible to the public for the buying and selling of securities, commodities, and other goods.

Stockholders' Equity

The owners' residual interest in a corporation's assets after deducting liabilities, often referred to as shareholder equity or owner's equity.