Gustav & Co.'s net income is $13,000, the market value of common stock is $131,000, and the book value of common stockholders' equity is $70,000. Gustav's P/E Ratio is ________ and the Price to Book Ratio is ________. (Round your answer to two decimal places, X.XX.)

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Quizplus · Accepted Answer

The P/E Ratio is calculated as Market Value of Common Stock / Net Income = $131,000 / $13,000 = 10.08. The Price to Book Ratio is calculated as Market Value of Common Stock / Book Value of Common Stockholders' Equity = $131,000 / $70,000 = 1.87.