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Q: Finance ( No Answer,   1 Comment )
Question  
Subject: Finance
Category: Miscellaneous
Asked by: baseball2-ga
List Price: $3.00
Posted: 13 Apr 2005 12:49 PDT
Expires: 14 Apr 2005 18:01 PDT
Question ID: 508879
Could someone provide me with a calculation as to how to calculate the
marekt to book ratio, earnings per shares for a company and price
earnings ratio? I have all the data I just need the formula. Greatly
appreciate if I could have a response by tomorrow
Answer  
There is no answer at this time.

Comments  
Subject: Re: Finance
From: krace-ga on 13 Apr 2005 13:11 PDT
 
Quote:
Could someone provide me with a calculation as to how to calculate the
marekt to book ratio, earnings per shares for a company and price
earnings ratio? I have all the data I just need the formula. Greatly
appreciate if I could have a response by tomorrow

Price-Earning Ratio = (Market Price Per Share) divided by (/) (Earnings Per Share)

Earnings Per Share = (Net Income - Preferred Dividends) / (Average
Number of Common Shares Outstanding)

Market to Book Ratio = (Book Value of Firm) / (Market Value of Firm)

The market to book ratio can also be computed on a per share basis by
first figuring out the "Book Value per Share" which is equal to:
(Total Stockholders' Equity - Preferred Stock) / (Number of Common
Shares Outstanding)
You take this number and compare it to what the company is currently
trading for on the market.

Source:
Garrison and Noreen. "Managerial Accounting" McGraw-Hill/Irwin 2003

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