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:

The book values per share for the same four years discussed in

  1. Compute the ratio of price to book value for each year in the table above.
  2. 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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!