Ratios are mostly calculated using data drawn from the financial 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 financial statements.

Consider the case of Cute Camel Woodcraft Company:

Cute Camel Woodcraft Company just reported earnings after tax $($also called net income$)$ of $$9,750,000$ and a current stock price of $$28\mathrm{.}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 $2,900,000$ new shares of stock $($raising its shares outstanding from $5,500,000$ to $8,400,000).$

If Cute Camel$$s forecast turns out to be correct and its price$/$earnings $($P$/$E$)$ ratio does not change, what does the company$$s management expect its stock price to be one year from now? $($Round any P$/$E ratio calculation to four decimal places.$)$

$$23\mathrm{.}35$ per share

$$28\mathrm{.}50$ per share

$$17\mathrm{.}51$ per share

$$29\mathrm{.}19$ per share

One year later, Cute Camel$$s shares are trading at $$54\mathrm{.}56$ per share, and the company reports the value of its total common equity as $$39,228,000.$ Given this information, Cute Camel$$s market$-$to$-$book $($M$/$B$)$ ratio is $.$