On August 1, 2007, Dell Computer Corporations stock closed trading at $27.76 per share, whereas Apple Corporations shares closed at $133.64. Does this mean that
On August 1, 2007, Dell Computer Corporation’s stock closed trading at $27.76 per share, whereas Apple Corporation’s shares closed at $133.64. Does this mean that because Apple’s stock price is roughly four times that of Dell’s, Apple is the more valuable company? Interpret the prices for these two firms using the followinginformation:
.png)
(Most recent 12 months) Dell 2007 Apple 2007 Net income ( millions) Shares outstanding (millions) Earnings per share () Price per share (8/1/07) Price-to-earnings ratio (PE ratio) Book value of common equity ( millions) Book value per share (S) Market-to-book ratio $3,572 3,130 869.16 $ 1.55 3.60 $27.76 $133.64 37.11 $4,129 S 9,984 $1.80 11.49 2,300 17.91 15.42 11.63
Step by Step Solution
3.47 Rating (176 Votes )
There are 3 Steps involved in it
Step: 1
We are asked to compare Dell to Apple using the information given below Is Apple more valuable since its stock price is so much higher We can answer t... View full answer
Get step-by-step solutions from verified subject matter experts
100% Satisfaction Guaranteed-or Get a Refund!
Step: 2Unlock detailed examples and clear explanations to master concepts
Step: 3Unlock to practice, ask and learn with real-world examples
Document Format ( 1 attachment)
344-B-F-F-M (4762).docx
120 KBs Word File
See step-by-step solutions with expert insights and AI powered tools for academic success
-
Access 30 Million+ textbook solutions.
-
Ask unlimited questions from AI Tutors.
-
Order free textbooks.
-
100% Satisfaction Guaranteed-or Get a Refund!
Claim Your Hoodie Now!
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
Study Smart with AI Flashcards
Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge
Explore Flashcards
