Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share?
A) $450, $1,050, respectively
B) $1,050, $450, respectively
C) $22.2222, $9.5238, respectively
D) $9.5238, $22.2222, respectively

Question

Quizplus · Accepted Answer

The book value per share is calculated as the market price divided by the market-to-book ratio, which is $100 / 4.5 = $22.2222. The earnings per share is calculated as the market price divided by the PE ratio, which is $100 / 10.5 = $9.5238.

Tina's Track Supply's Market-To-Book Ratio Is Currently 4