(Related to Checkpoint 4.4) (Market value analysis) Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per share total shares outstanding) is $748,200. The firm's earnings per share are $2.99, which produces a price-earnings ratio of 11.93. If there are 49,000 shares of common stock outstanding, what is the firm's market-to-book ratio (ie., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us? The market-to-book ratio is (Round to two decimal places.)
(Related to Checkpoint 4.4) (Market value analysis) Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per share total shares outstanding) is $748,200. The firm's earnings per share are $2.99, which produces a price-earnings ratio of 11.93. If there are 49,000 shares of common stock outstanding, what is the firm's market-to-book ratio (ie., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us? The market-to-book ratio is (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:(Related to Checkpoint 4.4) (Market value analysis) Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per share total shares outstanding) is $748,200. The firm's earnings per share are $2.99, which produces a price-earnings ratio of 11.93. If there
are 49,000 shares of common stock outstanding, what is the firm's market-to-book ratio (ie., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?
The market-to-book ratio is (Round to two decimal places.)
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