Explore BrainMass

# Market value ratio

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Hershey Market value ratios 2008
Market Price of common stock at year-end 2008 = 34.74
2008 Earning per share = 1.36
PE(price/earning) = Market price per share/earning per share = 34.74/1.36 = 21.31
Book value per share = stockholder's equity/# of share outstanding = 318,199/227,035 =1.401
Market to book ratio = Market price per share/book value per share = 34.74/1.401= 24.8
Hershey Market value ratios 2009
Market Price of common stock at year-end 2009 = 35.79
2009 Earning per share = 1.90
PE(price/earning) = Market price per share/earning per share = 35.79/1.90 = 18.83
Book value per share = stockholder's equity/# of share outstanding = 720,459/227,998 = 3.156
Market to book ratio = Market price per share/book value per share = 35.79/3.156 = 11.340
Tootsie Roll Market value ratios 2008
Market Price of common stock at year-end 2008 = 24
2008 Earning per share = 0.68
PE(price/earning) = Market price per share/earning per share = 24/0.68 = 35.29
Book value per share = stockholder's equity/# of share outstanding = 634,770/56,799 = 11.17
Market to book ratio = Market price per share/book value per share = 24/11.17 = 2.05
Tootsie Roll Market value ratios 2009
Market Price of common stock at year-end 2009 = 23.5
2009 Earning per share =0 .95
PE(price/earning) = Market price per share/earning per share = 23.5/0.95 = 24.73
Book value per share = stockholder's equity/# of share outstanding = 652485/ 56072 = 11.64
Market to book ratio = Market price per share/book value per share = 23.5/11.64 = 2.02

Comments the ratio analysis should include ratios for the years 2008 and 2009 and should include comparisons between Tootsie Roll and Hershey:

#### Solution Preview

Comments the ratio analysis should include ratios for the years 2008 and 2009 and should include comparisons between Tootsie Roll and Hershey:
Market value ratios show the investor confidence in the organization.
Hershey's Ratios
Its EPS has improved in ...

#### Solution Summary

Solution explains Market value ratio

\$2.19