× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
sestej1 sestej1
wrote...
Posts: 1
Rep: 0 0
8 years ago
Greene Inc. s balance sheet shows a stockholders equity value of $755,900. the firm s earnings per share was $3.04, resulting in a price/earning ratio of 12.29X. there are 51,000 shares of common stock outstanding. what is the price to book ratio/ what does this indicate about how shareholders view Greene Inc.?
Read 733 times
1 Reply

Related Topics

Replies
wrote...
#1
Staff Member
8 years ago
Similar Question
Greene Inc.'s balance sheet shows a stockholders' equity value of $759,400. The firm's earnings per share was $2.95, resulting in a price/earnings ratio of 12.41X. There are 53,000 shares of common stock outstanding. What is the price/book ratio?

Answer:

Price/earnings ratio =   

12.41 = Price per share / $2.95

Price per share = $2.95 * 12.41

= $36.60

Price/book ratio =   

Equity Book Value per share = $759,400 / 53,000

= $14.32

Price/Book Ratio = $36.60 / $14.32

= 2.55
Ask another question, I may be able to help!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1104 People Browsing
 101 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1062
  
 710
  
 1008
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 249
Previous poll results: How often do you eat-out per week?