1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
agasfer [191]
3 years ago
5

Luther Corporation Consolidated Balance Sheet December​ 31, 2006 and 2005​ (in $​ millions) Assets 2006 2005 Liabilities and ​St

ockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.6 58.5 Accounts payable 86.9 73.5 Accounts receivable 55.2 39.6 Notes payable​ / ​short-term debt 9.4 9.6 Inventories 46.6 42.9 Current maturities of ​long-term debt 39.9 36.9 Other current assets 5.2 3.0 Other current liabilities 6.0 12.0 Total current assets 165.6 144.0 Total current liabilities 142.2 132.0 ​Long-Term Assets ​Long-Term Liabilities Land 66.9 62.1 ​ Long-term debt 232.9 168.9 Buildings 106.2 91.5 Capital lease obligations Equipment 118.5 99.6 Less accumulated depreciation ​(56.7​) ​(52.5) Deferred taxes 22.8 22.2 Net​ property, plant, and equipment 234.9 200.7 Other​ long-term liabilities minusminusminus minusminusminus Goodwill 60.0 minusminus Total​ long-term liabilities 255.7 191.1 Other​ long-term assets 63.0 42.0 Total liabilities 397.9 323.1 Total​ long-term assets 357.9 242.7 ​Stockholders' Equity 125.6 63.6 Total Assets 523.5 386.7 Total liabilities and ​Stockholders' Equity 523.5 386.7 Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at​ $16 per​ share, then​ Luther's market-to-book ratio would be closest​ to: A. 2.6 B. 0.65 C. 1.3 D. 1.82
Business
1 answer:
aliina [53]3 years ago
6 0

Answer:

C. 1.3

Explanation:

market to book ratio = market capitalization / book value

  • market capitalization = total stocks outstanding x stock price = 10,200,000 stocks x $16 = $163,200,000
  • book value = stockholders' equity = $125,600,000

market to book ratio = $163,200 / $125,600 = 1.299 ≈ 1.3

The market to book ratio basically measures a company markets value versus its book value. Generally, if a company is profitable and successful, its market to book ratio should be higher than 1.

You might be interested in
Sản phẩm hữu hình và sản phẩm vô hình khác biệt như thế nào?
mr Goodwill [35]

Tài sản hữu hình là bất cứ thứ gì có thể nhìn thấy và hiện diện vật chất như tiền mặt, tài sản, nhà máy và máy móc hoặc các khoản đầu tư. Mặt khác, tài sản vô hình là những thứ không thể nhìn thấy được như lợi thế thương mại của công ty, nhãn hiệu và quyền sở hữu trí tuệ.

Stop your reminding me of vietcong

8 0
2 years ago
In order to break even, your minimum selling price must be __________ your variable costs.
vovikov84 [41]
The answer to your question is c

6 0
3 years ago
Michael is the owner of a company that manufactures mp3 players for cars. He wants to expand his business, so he decides to laun
Grace [21]

Answer:

B) Cannibalization occurs when the sales of a new brand take away from sales of an existing brand. Whenever a firm sells a new product it must look out for cannibalization. Michael's new mp3 players are cannibalizing the sales of his old players.

Explanation:

Market cannibalization occurs when a company's new product line crowds out the existing market for its current products, rather than expanding the company's market base as originally intended. In other words, rather than appealing to an additional segment of the market, a new product line appeals to the company's current market, reducing the demand for its established products. In this respect, market cannibalization is an instance in which a company's own two product lines compete against one another.

5 0
2 years ago
What type of life insurance are credit policies issued as?
trasher [3.6K]
<span>They are considered decreasing term policies. In these policies, the benefits usually decrease over the life of the policy: that is, the closer one gets to the end of the policy term, the less the benefit will typically be. At the end of the term, there is no option to renew for the same premiums, and the policy simply expires.</span>
6 0
3 years ago
Kanye, Eddie, Jaco, and Danny are trying to form a band. They each have some basic skills on most instruments, so their current
Maurinko [17]

Answer:

I don't understand...

8 0
3 years ago
Other questions:
  • How can u keep a converstaion going with somebody
    6·2 answers
  • Which of the following will increase investment spending
    9·1 answer
  • Consider two people who are currently out of work. Tim would like to work but he is not looking for work because there have been
    7·2 answers
  • Which types of teams most are appropriate when the primary goal is innovation and the organization needs flexibility to cope wit
    12·1 answer
  • A goal taking which of these lengths of time to achieve is most likely to be a long-term goal? A. 10 minutes B. 10 hours C. 10 y
    14·1 answer
  • Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relativelylow prices. To
    13·1 answer
  • Which of the following statements is correct?
    13·1 answer
  • Which of these factors contributes to the popularity of cable TV advertising?
    13·1 answer
  • Focuses on using information about the customer to create
    5·1 answer
  • 1. What area of law protects the sale of a home?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!