ExxonMobil Corporation is one of the largest companies in the world. The company explores, develops, refines, and markets petroleum products. The basic earnings per share for three comparative years were as follows:

The company disclosed the following information from the statement of stockholders' equity (in millions):

The market price at the end of each year was $33, $40, and $51 for December 31, 2002, 2003, and 2004, respectively.
a. Determine the price-earnings ratio for 2002, 2003, and 2004. Round to two decimal places.
b. Determine the price-book ratio for 2002, 2003, 2004.
c. Interpret your results over the threeyears.

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Years Ended December 31, 2003 $3.24 2004 2002 Basic earnings per share $3.91 1.69 Total stockholders' equity Common shares outstanding Dec. 31, 2004 $101,661 Dec. 31, 2003 $89,915 Dec. 31, 200.2 $74,597 6,700 6,401 6,568