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Market-to-book ratio

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A company has current assets that have an estimated book value (if sold) of $20 million. The fixed assets book value is $120 million, but the market value (if sold) is $180 million. The company has total debt on the books of $80 million; however interest rate declines have increased the market value of the debt to about $100 million.

- Calculate the company's market-to-book ratio, and explain the results

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Solution helps in computing company's market-to-book ratio

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A company has current assets that have an estimated book value (if sold) of $20 million. The fixed assets book value is $120 million, but the market value (if sold) is $180 million. The company has total debt on the books ...

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