6. Market value ratios Faboes are mastiy calculatad uaing data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm's observable market velue, atock prices, and book values, integrating information from both the market end the firmy fininclal utatemants. Cansider the case of Cute Camel Woodcraft Compervy: Cute Camel Woodonft Company fust reported sarninge after tax (alie enled anet income) of $9,250,000 and a curfen! stock price of 534 00 per shere. The company is forwcasting an increase of 25% for its aftentax income next year, but it also expects it will have to issue 3,000,000 new sharnis of stock (raising ita sharet outatinding from 5,500,000 to 0,500,000). If Cute Camers forecent tume out to be correct and ita price/eemings (F/E) ratio does not change, what does the company's manegement expect its stock pelce to be one year from now? (Round any P/E ratio calculation to four decimal ploces) 527,52 per share 13000 par thare 120.64 per shaie 1594:40 per inaro One year latec, Cute Camels shares are trading at $50.84 per share, and the company reports the vabue of rts totol common equity as $40,704,000. Glven this information, Cute Camers maricet- to book (H/8) ratio if Which of the following stataments is true about market value ratios? Companies with high research and development (Riso) expenses tand to have high PrE rabod