Question

Hoagland corp's stock price at the end of last year was $48.50, and its book value per share was $25.00. what was its market/book ratio? group of answer choices

a. 2.17
b. 1.94
c. 1.63
d. 1.55

Answer 1

The market/book ratio for Hoagland Corp is calculated by dividing their stock price of $48.50 by the book value per share of $25.00, resulting in a ratio of 1.94. Therefore, the correct option is B.

Step-by-step explanation:

The market/book ratio is calculated by dividing the current stock price by the book value per share. In the case of Hoagland Corp, their stock price at the end of last year was $48.50 and their book value per share was $25.00. To find their market/book ratio, you would perform the following calculation:

Market/Book Ratio = Stock Price / Book Value Per Share
Market/Book Ratio = $48.50 / $25.00
Market/Book Ratio = 1.94

Therefore, the correct answer is b. 1.94.