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Vitek1552 [10]
3 years ago
9

Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.29 times and PE ratio is 5.49 times. If Val's

Volleyball Supply's common stock is currently selling at $9.70 per share, what is the book value per share and earnings per share? (Round your answer to 2 decimal places.)
Business
1 answer:
olga2289 [7]3 years ago
4 0

Answer:

Book Value of Share is $2.9

Earning Per share is $1.8

Explanation:

Market to book value ratio is the measure to calculate the time the market value of a share is as compared to book value of that share.

Market to book value = Market value / Book value

3.29 = $9.7 / Book value

Book Value = $9.7 / 3.29

Book value = $2.9

Price earning ratio is the ratio the compare the market price of a share with earning associated with that share.

Price earning Ratio = Price of share / Earning per share

5.49 = $9.7 / Earning per share

Earning Per share = $9.7 / 5.49 = $1.8

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