When in a situation where the stock price of Hoagland Corp. at the end of last year was $24.50, and the book value during the same period was $25 per share, then the market/book ratio will be 0.98. Therefore, the option E holds true.
The market book ratio can be calculated with the use of generalized formula, and the given information will be done as below.
Market/Book Ratio = Closing Stock Price / Book Value
Market/Book Ratio = 24.50 / 25
Market/Book Ratio = 0.98
Therefore, the market/book ratio for the given condition will be 0.98.
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