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Price/book ratio

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Greene Inc.'s balance sheet shows a stockholders' equity value of $750,500.
The firm's earnings per share was $3, resulting in a price/earnings ratio of 12.25. There are 50,000 shares of common stock outstanding. What is the price/book ratio? What does this indicate about how shareholders view Greene Inc.?

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The solution calculates price/book ratio and answers how shareholders view the company.

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Greene Inc.'s balance sheet shows a stockholders' equity value of $750,500.
The firm's earnings per share was $3, resulting in a price/earnings ratio of 12.25. There are ...

Purchase this Solution
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