Market value ratios you are considering an investment in


Market Value Ratios You are considering an investment in Roxie’s Bed & Breakfast Corp. During the last year, the firm’s income statement listed an addition to retained earnings of $4.8 million and common stock dividends of $2.2 million. Roxie’s year-end balance sheet shows common stockholders’ equity of $35 million with 10 million shares of common stock outstanding. The common stock’s market price per share was $9.00. What is Roxie’s Bed & Breakfast’s book value per share and earnings per share? Calculate the market-to-book ratio and PE ratio. (LG3-5)

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Financial Management: Market value ratios you are considering an investment in
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