4. Jaster Jets 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 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Taster\'s market/book ratio? Solution Market value of shares: = 800 million×$32 = $25,600 million Book value of equity: = $10,000 million-$1,000 million-$3,000 million = $6,000 million Market to book ratio: = $25,600 million/$6,000 million = 4.27 times.