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Winston Watches stock price is $80 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 400 million shares of common stock outstanding. What is Winston's market/book ratio?

Respuesta :

TomShelby

Answer:

market to Book ratio 5.33

Explanation:

Market Capitalization

market price x shares outstanding

80 x 400,000,000 = 32,000,000,000 = 32 billions (short scale)

Balance sheet:

Assets - Liab

10 - (1 + 3) = 10 - 4 = 6B

Market to Book Ratio

32 / 6 = 5.33

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