Calculate the "market-to-book" ratio and use your knowledge about the residual income valuation model to explain what this ratio tells you about the market's expectations of the company's future return on equity (ROE).

• BV Common Shareholder's Equity = $49,526 (in millions)
• Stock price = $34.97
• Shares Outstanding = 1,213,099,787 
• Market Value of Equity = Shares Outstanding × Stock price = $42,422 (in millions)

Answer rating: 100% (QA)

The markettobook ratio MBR measures the relationship between a companys market value and book value ... View the full answer