86. The following information is from a company’s most recent financial statements:
U.S. $ in millions except for shares outstanding and tax rate
Preferred stock
40
Common stock
120
Additional paid-in capital
30
Retained earnings
190
Treasury stock
(55)
Total shareholders’ equity
325
Total number of common shares outstanding
10 million
Tax rate
40%
The company uses the LIFO inventory method. The footnotes to the financial statements indicate that if the company had used the FIFO method, the inventory balance would have been $45 million higher than the amount reported on the company’s most recent financial statements. If the company’s common stock is currently selling for $59 per share, the company’s adjusted price-to book-value ratio is closest to:
A. 1.67.
B. 1.79.
C. 1.89.

为什么INVENTORY 又乘以TAX RATE?

BV of Equity 包括Common stock、Additional paid-in capital、Retained earnings，再减去Treasury stock

再加调整项 Inv(1-t)，再除shares，就是BV per share