The problem gives me Stockholders Equity, P/E ratio, Common Shares Outstanding, and Market/Book Ratio
2007-02-15 17:56:37 · 2 answers · asked by Big A 1 in Business & Finance ➔ Other - Business & Finance
in this problem, stokholders equity is 3.75 billion, P/E ratio is 3.5X, Common Shares Outstanding are 50 million, and the market/book ratio is 1.9...It asks for earnings per share.
2007-02-15 18:15:59 · update #1
I don't think there is the proper info in your answer to figure that out.
If you knew the earings and the ratio , you could figure the price used to calculate the ratio,
But prices change by the minute so there is no necessity to know theprice/share
2007-02-15 18:01:33 · answer #1 · answered by bob shark 7 · 0⤊ 0⤋
in this problem, stokholders equity is 3.75 billion, P/E ratio is 3.5X, Common Shares Outstanding are 50 million, and the market/book ratio is 1.9...It asks for earnings per share.
3.75 X 10^9 / 50 X 10^6 = 37.5(5) X 10^3 = $187,500 per share
Stock holders equity divided by Common Shares Outstanding should equal price per share.
2007-02-15 18:26:32 · answer #2 · answered by whatevit 5 · 0⤊ 0⤋