Calculate the price-earnings ratio

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Reference no: EM131815172

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 $5.40 million and common stock dividends of $2.30 million. Roxie's year-end balance sheet shows common stockholders' equity of $36.1 million with 11 million shares of common stock outstanding. The common stock's market price per share was $9.10.   

1. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.)

2. What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.)

3. Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

4. Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131815172

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