Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 6. Market value ratios Aa Aa Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market-based ratios, relate to a firm's observable market value, stock prices, and book va integrating information from both the market and the firm's financial statem lues, Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company just reported earnings after tax (also called net income) of $8,500,000, and a current stock price of $28.50 per share. The company is forecasting an increase of 2 year, but it also expects it will have 5,500,000 to 7,500,000). 5% for its after-tax income next to issue 2,000,000 new shares of stock (raising its shares outstanding from If Cute Camel's forecast turns company's management expect its stock price to be one year from now? (Note: Round any EPS calculations to two decimal places, and round any P/E ratio calculation to four decimal places.) out to be correct and its price-to-earnings (P/E) ratio does not change, what does the O $26.11 per share O $28.50 per share O $19.58 per share O $32.64 per share One year later, Cute Camel's shares are trading at $52.08 per share, and the company reports the value of its total common equity as $39,165,000. Given this information, Cute Camel's market-to-book (M/B) ratio is Can a company's shares exhibit a negative P/E ratio? O No O Yes Which of the following statements is true about market value ratios? O High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings. O Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings