Consider the following financial information for General Motors Company (GM) stock. Use this information to answer parts (a), (b), and (c).
General Motors
Stock price per share: $37.42
Earnings per share: $6.34
Price to book ratio: 1.2236
(a) Calculate GM's book value per share.
(b) Calculate GM's price-to-earnings ratio.
(c) Ford Motor Company (a competitor for GM) has earnings per share of $1.24. If Ford has the same price-to-earnings ratio as GM, what is the value of Ford's stock?

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The Answer of Consider the following financial information for General Motors Company (GM) stock. Use this information to answer parts (a), (b), and (c).
General Motors
Stock price per share: $37.42
Earnings per share: $6.34
Price to book ratio: 1.2236
(a) Calculate GM's book value per share.
(b) Calculate GM's price-to-earnings ratio.
(c) Ford Motor Company (a competitor for GM) has earnings per share of $1.24. If Ford has the same price-to-earnings ratio as GM, what is the value of Ford's stock?

Consider the Following Financial Information for General Motors Company (GM)