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2. Here are some accounting numbers and market values (in millions) for two hypothetical computer manufactures. These two computer manufactures are considered to be comparables

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2. Here are some accounting numbers and market values (in millions) for two hypothetical computer manufactures. These two computer manufactures are considered to be comparables for third computer manufacture firm. Sales Earnings Book Value Market Value Company 1 S45,220 S620 S13,950 S32,960 Company 2 6,080 1,290 1,560 1,90 a. Calculate price-to-sales, price-earnings (P/E), and price-to- book (P/B) ratios for Companyl and Company 2 b. Company 3 reported the following number for fiscal year Sales S31,170 Earnings 1,250 Book value $ 4,690 Apply multiples for Company 1 and 2 to price Company 3's 2,600 million outstanding shares

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