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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.?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:46 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/price-book-ratio-151724

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19

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