1. Market Value Ratios Lab R Doors' year-end price on its common stock is $55. The firm has total assets of $75 million, the debt ratio is 55%, no preferred stock, and there are 4.0 million shares of common stock outstanding. Calculate the market-to-book ratio for Lab R Doors.
5.33
1.19
6.52
13.75
2. Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 47.5%, capital intensity ratio = 2.55 times, profit margin = 23%, and dividend payout ratio = 40%. What is the sustainable growth rate for Rock? (Do not round intermediate steps.)
4.82%
23%
13.8%
11.49%