[单选题]

Falcon Financial Group is considering the purchase of Company A or Company B based on a low price-to-book investment strategy that also considers differences in solvency. Selected financial data for both firms, as of December 31,2009,as follows:

The firms' financial statement footnotes contain the following:· Company A values its inventory using the first in, first out (FIFO) method.
· Company B's inventory is based on the last in, first out (LIFO) method. Had Company B used FIFO, its inventory would have been $700 million higher.
· Company A leases its manufacturing plant. The remaining operating lease payments total $1,600 million. Discounted at 10%, the present value of the remaining payments is $1,000 million.
· Company B owns its manufacturing plant.
To make the firms financials ratios comparable, calculate the adjusted price-to-book ratios for Company A and Company B.
Company A    Company B

A.$2.17       $2.81

B.$2.17       $2.06

C.$1.63       $2.06

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