Use attachment to answer the followingIf price-to-book ratio at the end of 2005 equals 1.00, then PE ratio at end of 2004 equals (pick closest number): a) 4.19b) 8.38c) 4.78d) Not determinable American Corporation reports the following:Earnings per shareDividends per shareBook value per share- at the end of theyear2005$1.80$0.72$8.62

Formula = Price to book ratio = MPS / Book value per share

Answered: Use attachment to answer the following…

Use attachment to answer the following If price-to-book ratio at the end of 2005 equals 1.00, then PE ratio at end of 2004 equals (pick closest number): a) 4.19 b) 8.38 c) 4.78

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use attachment to answer the following

If price-to-book ratio at the end of 2005 equals 1.00, then PE ratio at end of 2004 equals (pick closest number):

a) 4.19

b) 8.38

c) 4.78

d) Not determinable

American Corporation reports the following:
Earnings per share
Dividends per share
Book value per share- at the end of the
year
2005
$1.80
$0.72
$8.62

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