contestada

Dudley Hill Golf Club's market-to-book ratio is currently 2.4 times and the PE ratio is 6.70 times. If Dudley Hill Golf Club's common stock is currently selling at $21.25 per share, what is the book value per share?

Respuesta :

Answer:

$8.85 per share

Explanation:

In this question, we are asked to calculate the book value per share.  We can do this by using a mathematical formula.

Mathematically, Market to Book Ratio = Market Price Per Share/Book Value Per Share

According to the values given in the question, the market per book ratio is 2.4 while the market price per share is $21.25

Rearranging the formula, the book value per share = Market price per share/Market to book ratio = 21.25/2.4 = $8.85 per share

Otras preguntas