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 firms earnings

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?

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