On December 31, 2010, Rex Corporation's common stock closed at a market price of $22 per share. Rex's 2010 earnings per share is $3.20; its book value per share is $5.
Required:
a. Calculate Rex's 2010 price-earnings ratio.
b. Calculate Rex's 2010 market price to book value ratio.

Question

On December 31, 2010, Rex Corporation's common stock closed at a market price of $22 per share. Rex's 2010 earnings per share is $3.20; its book value per share is $5.
Required:
a.	Calculate Rex's 2010 price-earnings ratio.
b.	Calculate Rex's 2010 market price to book value ratio.

Quizplus · Accepted Answer

The Answer of On December 31, 2010, Rex Corporation's common stock closed at a market price of $22 per share. Rex's 2010 earnings per share is $3.20; its book value per share is $5.
Required:
a.	Calculate Rex's 2010 price-earnings ratio.
b.	Calculate Rex's 2010 market price to book value ratio.

On December 31, 2010, Rex Corporation's Common Stock Closed at a Market