12)

? (Most recent 12? months)	Dell 2007		Apple 2007
Net Income? ($ millions)	?$3,572		?$3,130
Shares outstanding? (millions)	?2,300		869.16
Earnings per share? ($)	?$1.55		?$3.60
Price per share? (8/1/07)	?$27.76		?$133.64
? Price-to-earnings ratio? (PE ratio)	17.91		37.11
Book value of common equity? ($ millions)	?$4,129		?$9,984
Book value per share? ($)	?$1.80		?$11.49
? Market-to-book ratio	15.42		11.63

?(Analyzing market values using financial? ratios) On August? 1, 2007 the Dell Computer? Corporation's stock closed trading at $27.76 per share while Apple? Corporation's shares closed at $133.64. Does this mean that because? Apple's stock price is roughly four times that of? Dell's, Apple is the more valuable? company? Interpret the prices for these two firms using the information found? here:

It appears that Apple enjoys a ______ (higher/lower) price per share when compared to its 2007 earnings but a _______ (lower/higher) price when compared to the book value of the? firm's equity. The ______ (lower/higher) market-to-book ratio for Apple reflects that fact that Apple has used a great deal ______ (more/less) equity? (and _____ (more/less) debt) to finance its operations. ?(Select from the? drop-down menus.)