The equity portion of the balance sheet for BusFin Inc.is show below. If the stock price is $30 per share, calculate the market book ratio. Equity Portion of BusFinance Inc. Balance Sheet, 2022 Common stock ($0.25 par) $1,007.924 Capital surplus $1,476,958 Retained earnings 27.46 $1,919,506

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.