The annual report of a company at the end of its first year of operation contains the following data:

Common stock: $0.50 par value
- Authorized (2,500,000 shares): $1,250,000
- Issued (2,000,000 shares): $1,000,000
Additional paid-in-capital: $10,000,000
Retained earnings: $4,000,000
Current price per share: $30

The company's ending inventories using LIFO are valued at $1,500,000 and a footnote to financial statements reports that inventories valued using FIFO would be $1,900,000. The company's tax rate is 30 percent. The FIFO adjusted price-to-book value of the company is closest to ______.

Explanation: Inventory Adjustment = $400,000 x 0.70 = $280,000: (FIFO - LIFO values) x (1-Tax rate)
BV per share = $1 m + $10 m + $4 m + $0.28 m = $15.28 / 2 m sh. = $7.64
Price-to-book value = $30 / $7.64 = 3.93