Market Value Ratios 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?

Question

Quizplus · Accepted Answer

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

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