6. Market value ratios Ratios are masty calculated usingdata drawn from the financial statenents of a firrn. However, anather group of ratios, called market-based ratios, relate to a firm's observable market value, stock prices, and boak values integrating information from both the market and the firrn's financial statements. Consider the case of Cold Goose Metal Works Inc.: Cald Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,750,000, and a current stock price of $28.50 per share. The company is forecasting an increase of 25% for its after-tax income next year, butit also expects it will have to issue 2,900,000 new shares of stock (ralsing its shares outstanding from 5,500,000 to 8,400,000) If Cald Goose's forecast burns out to be correct and its price-ta-eanings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Note: Raund any EPS calculatlans to twa decimal places, and round any P/E ratio calculation to four decimal places) $23.35 per share O $28.50 per share O $17.51 per share O $29.19 per share One year later, Cald Goose's shares are trading at $48.36 per share, and the company reports the value of its tota common equity as $39,228,000. Given this information, Cold Goose's market-t-book (M/B) ratio is Is it possible for a company to exhibit a negative EPS and thus a negative P/E ratio? O Yes O No Which of the follawing statements is true abaut market value ratios? Campanies with high research and development (R&D) expenses tend to have high P/E ratios. Campanies with high research and development (R&D) expenses tend to have law PE ratios