Question: Below are some financial statistics for Google, the Web search engine provider, and Burlington Northern Santa Fe, a large North American railroad (all numbers in

Below are some financial statistics for Google, the Web search engine provider, and Burlington Northern Santa Fe, a large North American railroad (all numbers in thousands, except per share amounts).

a. Determine the price-book ratio for each company. Round to two decimal places.
b. Explain the difference in the price-book ratio between the twocompanies.

Total stockholders' equity, Dec. 31, 2004 Common shares outstanding, Dec. 31, 2004 Market price, Dec. 31, 2004 Google $2,929,056,000 $193 per share Burlington Northern Santa Fe 59,311,000,000 376,800,000 47 per share 193,176,000

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a b Google has a pricebook ratio of 1273 while Burlington has a pricebook ratio of only 190 The mark... View full answer

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