Calculating market value ratios


Meadville Co. had additions to retained earnings for the year just ended of $150,000. The firm paid out $100,000 in cash dividends, and it has ending total equity of $5 million. If Meadville currently has 100,000 shares of common stock outstanding, what are earnings per share? Book value per share? If the stock currently sells for $70 per share, what is the market-to-book ratio? The price-earnings ratio?

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Finance Basics: Calculating market value ratios
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