Homework hmwk 6 Score 0 of 1 pt Bookmatch 414 bookstatic Mar

Homework: hmwk 6 Score: 0 of 1 pt Bookmatch 4-14 (book/static) (Market-value ratios) Garret Industries has a price/earnings ratio of 16.29X. b. Using the price per share you found in part a, determine the price/book ratio if Garret\'s equity book value per share is $9.58. a. The price per share of Garret\'s stock is $1- (Round to the nearest cent) 5016(0 complete) ?

Solution

Price earnings ratio = Price per share / EPS

16.29 = Price per share / 1.35

Price per share = 16.29*1.35

Price per share = $21.99

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Price to book ratio = Price per share / Book value

Price to book ratio = 21.99 / 9.58

Price to book ratio = 2.30