If a Firm's Total Book Value of Assets Is $200

question 23

Multiple Choice

If a firm's total book value of assets is $200 million and total liabilities are $120 million, what is the market-to-book ratio if the firm issues 5 million shares of common stock?

• A) 1.0
• B) 1.5
• C) 2.0
• D) 2.5

---

Definitions:

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychoanalytic School

A set of psychological and therapeutic theories and methods, which originated with Sigmund Freud, emphasizing unconscious motivations and conflicts as driving human behavior.

Scientific Method

A systematic process of inquiry involving observation, hypothesis formation, experimentation, and conclusion to generate empirical knowledge.

Formulating A Hypothesis

The process of creating a testable statement or prediction, based on observations or theories, that can be investigated through experimentation or research.