A Firm Has Current Assets Which Could Be Sold for Their

A firm has current assets which could be sold for their book value of $10 million.The book value of its fixed assets is $60 million but they could be sold for $95 million today.The firm has total debt at a book value of $40 million but interest rate changes have increased the value of the debt to a current market value of $50 million.This firm's market to book ratio is ________.

A) 1.83
B) 1.50
C) 1.35
D) 1.46

Correct Answer:

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