Question

Greene, Inc.’s balance sheet indicates that the book value of stockholders’ equity (book value per share × total shares outstanding) is $750,500. The firm’s earnings per share are $3, which produces a price-earnings ratio of 12.25. If there are 50,000 shares of common stock outstanding, what is the firm’s market-to-book ratio (i.e., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?



$1.99
Sales0
Views78
Comments0
  • CreatedOctober 31, 2014
  • Files Included
Post your question
5000