Question: Please help me complete this. 8. Market value ratios Ratios are mostly calculated using dota drawn from the financial statements of a firm. However, another

Please help me complete this.
Please help me complete this. 8. Market value ratios Ratios are mostly
calculated using dota drawn from the financial statements of a firm. However,

8. Market value ratios Ratios are mostly calculated using dota 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 values, integrating information from both the market and the firm's financial statements. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000, and a current stock price of $17.50 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 1,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 7,000,000 ). If Cold Goose's forecast tums out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? . (Note: Round any P/E ratio calculation to four decimal places. Round intermediate calculation to two decimal places.) $17.26 per share $17.50 per share $12.95 per share $21.58 per share One year later, Cold Goose's shares are trading at $48.36 perthare, and the company reports the value of its total common equity as $24,164,000. Given this information, Cold Goose's market price-to-book (P/BV) ratio is (Note: Round intermediate calculation to two decimal places.) Can a company's shares exhibit a negative P/E ratio? Yes No No Which of the following statements is true about market value rotios? Companies with high research and development (RSD) expenses tend to hove low R/E ratios. Companies with high research and development (R8D) expenses tend to have high folE natios

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