Chang, Inc.'s balance sheet shows a stockholders' equity-book value (total common equity) of $750,500. The firm's earnings

Question:

Chang, Inc.'s balance sheet shows a stockholders' equity-book value (total common equity) of $750,500. The firm's earnings per share is $3, resulting in a price / earnings ratio of 12.25X. There are 50,000 shares of common stock outstanding. What is the price/book ratio? What does this indicate about how shareholders view Chang, Inc.?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...