Question: The book values per share for the same four years discussed in the preceding question were: Compute the ratio of price to book value for
The book values per share for the same four years discussed in the preceding question were:

- Compute the ratio of price to book value for each year in the table above.
- Assess whether there is any dramatic shift in the ratios worthy of note.
\\begin{tabular}{|l|l|l|} \\hline Year & Book Values & \\( \\begin{array}{l}\\text { Ratio of price to book } \\\\ \\text { value }\\end{array} \\) \\\\ \\hline 1998 & \\( \\$ 1.18 \\) & \\\\ \\hline 1999 & \\( \\$ 1.55 \\) & \\\\ \\hline 2000 & \\( \\$ 2.29 \\) & \\\\ \\hline 2001 & \\( \\$ 3.26 \\) & \\\\ \\hline \\end{tabular} \\begin{tabular}{|l|l|l|} \\hline Year & Book Values & \\( \\begin{array}{l}\\text { Ratio of price to book } \\\\ \\text { value }\\end{array} \\) \\\\ \\hline 1998 & \\( \\$ 1.18 \\) & \\\\ \\hline 1999 & \\( \\$ 1.55 \\) & \\\\ \\hline 2000 & \\( \\$ 2.29 \\) & \\\\ \\hline 2001 & \\( \\$ 3.26 \\) & \\\\ \\hline \\end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
