Ocean power technologies $300 million common equity 12.2 million shares of common stock outstanding If their market value added is $136 million what is the company’s stock price?
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Market Value Added (MVA) means the difference between the market value of a firm and its common equity.
So, MVA = Market value – Common equity
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