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 ________

Question

Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005
Current Assets Current Liabilities
Cash 59.5 58.5 Accounts payable 88.9 73.5
Accounts receivable 55.1 39.6 Notes payable / short-term debt 10.4 9.6
Inventories 45.9 42.9 Current maturities of long-term debt 37.3 36.9
Other current assets 5.5 3.0 Other current liabilities 6.0 12.0
Total current assets 166.0 144.0 Total current liabilities 142.6 132.0

Long-Term Assets Long-Term Liabilities
Land 66.1 62.1 Long-term debt 236 168.9
Buildings 109.4 91.5 Capital lease obligations
Equipment 118.5 99.6
Less accumulated
depreciation (54.9) (52.5) Deferred taxes 22.8 22.2
Net property, plant, and equipment 239.1 200.7 Other long-term liabilities --- ---
Goodwill 60.0 -- Total long-term liabilities 258.8 191.1
Other long-term assets 63.0 42.0 Total liabilities 401.4 323.1
Total long-term assets 362.1 242.7 Stockholders' Equity 126.7 63.6

Total Assets 528.1 386.7 Total liabilities and Stockholders' Equity 528.1 386.7

A) 2.58
B) 0.64
C) 1.29
D) 1.80

Answer 1

Answer: C