Tina's Track Supply's market-to-book ratio is currently 4.5 times and the PE ratio is 10.5 times. If Tina's Track Supply's commo
1 answer:
Answer: $22.22 and $9.52
Explanation:
The market to book ratio compares market value and book value. In this question, the market to book ratio is 4.5 times which means that Tina's Track Supply's common stock is trading at 4.5 times of the book value.
4.5 =
=
Book value =
=$22.22
The Price Earning ratio is calculated by dividing price per share by earnings per share (EPS)
10.5 =
EPS =
=$9.52
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Explanation:
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then we calculate the DD rate again with the book value
47,500-9,500 = 38,000
38,000 x 2/10 = 7,600
Answer:
The correct answer is option a.
Explanation:
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