Greene, Inc.s balance sheet indicates that the book value of stockholders equity (book value per share

Question:

Greene, Inc.’s indicates that the book value of stockholders’ equity (book value per share × total shares outstanding) is $750,500. The firm’s earnings per share are $3, which produces a price-earnings ratio of 12.25. If there are 50,000 shares of outstanding, what is the firm’s market-to-book ratio (i.e., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...