Ratios: Book Value per Share of Common Stock Video Lessons

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Problem: Pawnee Planes has $10 billion in total assets.  Its balance sheet shows $1 billion in current liabilities, $4 billion in long-term debt, and $5 billion in common equity.  It has 800 million shares of common stock outstanding, and its stock price is $26 per share.  What is Pawnee’s market-to-book ratio? a. 2.08 b. 4.16 c. 5.20 d. 2.60 e. 1.00

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Problem Details

Pawnee Planes has $10 billion in total assets.  Its balance sheet shows $1 billion in current liabilities, $4 billion in long-term debt, and $5 billion in common equity.  It has 800 million shares of common stock outstanding, and its stock price is $26 per share.  What is Pawnee’s market-to-book ratio?

a. 2.08

b. 4.16

c. 5.20

d. 2.60

e. 1.00

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