$($Related to Checkpoint $4\mathrm{.}4)($Analyzing market value$)$ Greene, Inc.$\text{'}$s balance sheet indicates that the book value

of stockholders' equity $($book value per share $$ total shares outstanding$)$ is $$748,800.$ The firm's earnings per share are

$$2\mathrm{.}95,$ which produces a price$-$earnings ratio of $12\mathrm{.}98.$ If there are $47,000$ shares of common stock outstanding, what

is the firm's market$-$to$-$book ratio $($i$.$e$.,$ the ratio of price per share to book value per share$)?$ What does

the market$-$to$-$book ratio tell us$?$

The market$-$to$-$book ratio is

$($Round to two decimal places.$)$

What does the market$-$to$-$book ratio tell us$?($Select the best choice below.$)$

A$.$ This means that investors are willing to pay $$2\mathrm{.}40$ for each $$2\mathrm{.}95$ of shareholders' equity in the company's

books.

B$.$ This means that investors are willing to pay $$2\mathrm{.}95$ for each $$2\mathrm{.}40$ of shareholders' equity in the company's

books.

C$.$ This means that investors are willing to pay $$1$ for each $$2\mathrm{.}40$ of shareholders' equity in the company's books.

D$.$ This means that investors are willing to pay $$2\mathrm{.}40$ for each $$1$ of shareholders' equity in the company's books.