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28 December, 20:16

Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.31 times and PE ratio is 5.51 times. If Val's Volleyball Supply's common stock is currently selling at $9.80 per share, what is the book value per share and earnings per share? (Round your answer to 2 decimal places.)

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  1. 28 December, 21:14
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    Book Value per share is $2.96 and Earnings per share is $1.78

    Explanation:

    The market-to-book ratio is:

    Market Value = 3.31 times

    Book Value

    The market value of the stock is $9.80 per share. Therefore, to calculate the Book Value, we make the Book Value subject and divide the ratio by Market Value per share:

    Book Value per Share = Market Value per share

    Market-to-Book ratio

    = 9.80

    3.31

    = $2.96

    The PE ratio is:

    Price = 5.51 times

    Earnings

    The price of the stock is $9.80 per share. Therefore, to calculate the Earnings per share, we make the Earnings subject and divide the PE ratio by Price of stock:

    Earnings per share = Price

    PE Ratio

    = 9.80

    5.51

    = $1.78
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Home » Business » Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.31 times and PE ratio is 5.51 times. If Val's Volleyball Supply's common stock is currently selling at $9.
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