Final answer:
The market-to-book ratio is a valuation metric calculated as the market capitalization divided by the book value of equity (MVEQ). Thus, the option 2 is the correct answer.
Step-by-step explanation:
The market-to-book ratio is a financial valuation metric used to compare a company's current market value to its book value. The correct answer is that the market-to-book ratio is equal to the market cap divided by the book value of equity (MVEQ). It is calculated by taking the company's market capitalization (the total value of the company's outstanding shares) and dividing it by the company's book value of equity as reported on its balance sheet.