6. Market value ratios Rabos are mostly cakculsted using data drawn from the financial statements of a firm. However, another group of ratios, called market-based ratios, relate to a firm's observable market value, stock prices, and book values, integratieg information from both the market and the firm's financial stotements. Consider the ceste of Green Coterpillar Gatden Supplies Inc: Green Caterpllar Gstden Supplies Ine. just reported earnings after tax (alio called net income) of $95,000,000, and a current stock price of $78.50 per share. The company is forecasting an increase of 25% for its alter-tax inconie next yeac, but ir also expects it wil have to issue 2,800,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,300,000 ). expect its stock price to be one yoar from now? (Note: Round intermedate cakulations to four decimal places. Round the expected stock price to two decinal placers) $2361 per share $28 per share $17,71 per share $29.51 per share (Note: Do not round intermediste calculabonsi.) If Green Coterpillar's forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from new? (Note: Round intermediate calculations to four decimal places. Round the expected stock price to two decimal places.) $23.61 per share . $28 per share $17.71 per share 52951 per shate One year Later, Green Catorpillar's sharev are trading at $54.56 per share, and the company reports the value of its fotal common equity as \$39,197,609, Given this information, Green Caterpillar's marhet to-book (MVb) ratio is (Note: Do not round intermediate calculations.) Is it posabile for a company to exhibit a negatuve tPS and thus a negative P/E ratio? Yes No Which of the followng statements is tnue about market value ratios? Companies whth high reseauch and development (Rew) expenses tend to have high p/t ratios. Comparies with hagh research and development (KKD) expenses tend to have low P/E ratoos