Using the Following Information,determine the Market-To-Book Ratio for Montreal Computing

question 29

Multiple Choice

Using the following information,determine the market-to-book ratio for Montreal Computing Power Company.

Montreal Computing Power Company has 1,000 common shares outstanding.The shares were issued 10 years ago at $4 per share and currently trade at a price of $3.

• A) 0.667
• B) 0.933
• C) 1.400
• D) 1.500

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Definitions:

Stocks

Shares of ownership in a company, that represent a claim on the company's earnings and assets.

Annuities

Financial products that provide a stream of payments for a fixed period or for the lifetime of the annuitant, typically used for retirement savings.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, such as oil, gold, and wheat.

Interest Rate Spread

The difference between the interest rates of two different financial instruments, often highlighting the comparative risk or return.