(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 $133.64. Does this mean that because Apple's stock price is roughly four times that of Dell's, Apple is the more valuable company? Interpret the prices for these two firms using the information found here: V price when compared to the book value of the firm's equity. The V market-to-book ratio for Apple reflects that fact that Apple has used a great deal equity (and It appears that Apple enjoys a debt) to finance its ope price per share when compared to its 2007 earnings but a from the drop-down menus.) higher lower Data Table (Most recent 12 months) Net Income ($ millions) Shares outstanding (millions) Earnings per share ($) Price per share (8/1/07) Price-to-earnings ratio (PE ratio) Book value of common equity ($ millions) Book value per share ($) Market-to-book ratio Dell 2007 $3,572 2,300 $1.55 $27.76 17.91 $4,129 $1.80 15.42 Apple 2007 $3,130 869.16 $3.60 $133.64 37.11 $9,984 $11.49 11.63 Print Done