Problem 14-7A

Selected ratios for the current year for two companies in the office supplies industry, Cato Nouveau Inc. and Oak Unlimited Corp., follow:

		Cato Nouveau			Oak Unlimited
Asset turnover		2.5	times		2.1	times
Average collection period		30	days		34	days
Basic earnings per share		$3.30			$2.30
Current ratio		1.7	: 1		2.0	: 1
Days in inventory		58	days		114	days
Debt to total assets		46.7	%		28.0	%
Dividend yield		0.3	%		0.4	%
Gross profit margin		22.7	%		29.9	%
Payout ratio		8.0	%		19.3	%
Price-earnings ratio		28	times		46	times
Profit margin		5.4	%		4.5	%
Return on assets		13.5	%		9.5	%
Return on common shareholders equity		26.5	%		11.7	%
Times interest earned		4.6	times		8.6	times

(i) What is the market price per share of each companys common shares? (Round answers to 2 decimal places, e.g. 15.25.)

		Cato Nouveau		Oak Unlimited
Market Price per share		$		$