The following financial data for the Freemont Corporation

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5.Calculate the following market-based ratios and interpret each ratio:

Price-to-earnings ratio

Market price-to-book value ratio

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Assets Cash Marketable securities Accounts receivable Inventory Total current assets Fixed assets (net) Total assets $ 1,500 2,500 15,000 33,000 $52,000 35,000 $87,000 Balance Sheet (S000) Liabilities & Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Common stock (par value) Contributed capital in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $12,500 12,500 $25,000 22,000 $47,000 5,000 18,000 17,000 $40,000 $87,000 Assets Cash Marketable securities Accounts receivable Inventory Total current assets Fixed assets (net) Total assets $ 1,500 2,500 15,000 33,000 $52,000 35,000 $87,000 Balance Sheet (S000) Liabilities & Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Common stock (par value) Contributed capital in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $12,500 12,500 $25,000 22,000 $47,000 5,000 18,000 17,000 $40,000 $87,000

Answer rating: 100% (QA)

5 Pricetoearnings ratio Current share priceEarning per sh... View the full answer