Multiple Choice Question

The Eatery has a market$-$to$-$book ratio of $3\mathrm{.}2.$ What does this ratio indicate?

A market$-$to$-$book value of $3\mathrm{.}2$ means a firm's stock is worth $3\mathrm{.}2$ times the stock's value when it was originally issued.

A market$-$to$-$book ratio of $3\mathrm{.}2$ means the net fixed assets would cost $3\mathrm{.}2$ times their book value if they were to be replaced.

A market$-$to$-$book ratio of $3\mathrm{.}2$ means shareholders are willing to pay $$3\mathrm{.}20$ per dollar of book equity to buy the firm's stock.

A market$-$to$-$book value of $3\mathrm{.}2$ means a firm's stock is selling for $3\mathrm{.}2$ times the book value of the firm's debts.