Determine the price-book ratio for each company

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Reference no: EM13900716

Below are some financial statistics for Google, the Web search engine provider, and  Burlington Northern Santa Fe, a large North American railroad (all numbers in thousands, except per share amounts).

Burlington  Northern

                                                                        Google                      Santa Fe

Total  stockholders'  equity, Dec.  31, 2004           $2,929,056,000          $9,311,000,000

Common  shares  outstanding, Dec.  31, 2004      193,176,000               376,800,000

Market price, Dec. 31, 2004                                 $193  per share           $ 47 per  share

a. Determine the price-book ratio for each company. Round to two decimal places.

b. Explain the difference in the price-book ratio between the two companies.

Reference no: EM13900716

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