Series 86/87 Practice Test 12

Rowan Bancorp reports total shareholders’ equity of $2,400 million, which includes $200 million of preferred stock. Its balance sheet carries goodwill of $900 million and other intangible assets of $300 million. Rowan has 100 million common shares outstanding, and the stock trades at $18.00. What is Rowan’s price-to-tangible-book-value ratio?