Ratios are mostly calculated using data drawn from the financiai statements of a firm. However, another group of ratios, called market value ratios, relate to a firm's observable market value, stock prices, and book values, integrating information from both the market and the firm's finanoal statements: Consider the case of Blue Hamster Manufacturing inc: Bive Hamster Manufacturing 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 aiso expects it will have to issue 1,500,000 new shares of stock (ralsing its shares outstanding from 5,500,000 to 7,000,000 ). If Blue Hamster's forecast tums cut to be correct and its price/earnings (P/E) ratio does not change, what dons the company's management expect its ttock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) $17.26 per share $17.50 per share $1295 per share $21.58 per share One year later, Blue Hamster's shares are trading at $52.08 per share, and the company reports the value of its total common equity as $24,164,000. Given this information, Blue Hamster's market-to-book (M/B) ratio is Which of the following statements is true about market value ratios? Companies with high research and development (RBD) expenses tend to have low P/E ratios. Companios with high research and develogment (RSD) expenses tend to have high P/E ratios