Using Activision's stock price before the acquisition announcement, compute the ratio of the company's market value to the book value of shareholders' equity (i.e., the "market-to-book" ratio). Provide an explanation for why the company's market value of equity differs from its book value of equity?

Answer rating: 100% (QA)

To compute Activisions markettobook ratio we need to calculate the ratio of the companys market value of equity to its book value of shareholders equi... View the full answer