To calculate the Market-value-to-Book-value (MV/BV) ratio for Yung.com at year-end 2003, we'll follow these steps:

1. Book Value of Equity (BV):

We calculate the book value of equity as:

$BV = \text{Total Assets} - \text{Total Liabilities}$

Total Assets (2003):

Sum up the current assets and fixed assets for 2003:

• Cash (2003): $500
• Marketable securities (2003): $300
• Accounts receivable (2003): $800
• Inventory (2003): $2000
• Net Fixed Asset (2003): $6000

$\text{Total Assets (2003)} = 500 + 300 + 800 + 2000 + 6000 = 9600$

Total Liabilities (2003):

Add the notes payable, accounts payable, and long-term debt for 2003:

• Notes payable (2003): $1600
• Accounts payable (2003): $2000
• Long-term debt (2003): $4000

$\text{Total Liabilities (2003)} = 1600 + 2000 + 4000 = 7600$

Book Value of Equity (BV):

$BV = 9600 - 7600 = 2000$

2. Market Value of Equity (MV):

The market value of equity is the stock price multiplied by the number of shares outstanding.

$MV = \text{Stock price} \times \text{Number of shares} = 15 \times 100 = 1500$

3. Market-value-to-Book-value (MV/BV) Ratio:

$\text{MV/BV ratio} = \frac{\text{Market Value}}{\text{Book Value}} = \frac{1500}{2000} = 0.75$

To express this as a percentage:

$\text{MV/BV ratio} = 0.75 \times 100 = 75\%$

Answer: The Market-value-to-Book-value ratio is 75%.

Would you like more details on any part of this calculation? Let me know if you have questions or want further clarification.

Here are 5 related questions to further your understanding:

1. How would the MV/BV ratio change if the stock price increased?
2. What is the significance of the MV/BV ratio in evaluating a company’s financial health?
3. How would a change in total liabilities affect the book value of equity?
4. Why might a company’s market value be lower than its book value?
5. What other financial ratios would complement the MV/BV ratio for a complete analysis?

Tip: The Market-value-to-Book-value ratio is often used by investors to determine if a stock is undervalued or overvalued compared to the company's accounting value.