Problema Solution

Jaster has 10 billion in total assets. the right side of its balance sheet consists of 1 billion in current liabilities, 3 billion in long term debt, and 6 billion in common equity. The company has 800 million shares of common stock outstanding, and its stock price is 32 per share. What is Jaster's market/book ratio?

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Q: Jaster has 10 billion in total assets. the right side of its balance sheet consists of 1 billion in current liabilities, 3 billion in long term debt, and 6 billion in common equity. The company has 800 million shares of common stock outstanding, and its stock price is 32 per share. What is Jaster's market/book ratio?

ans:

10/800*32=0.4