6. Market value ratios Ratios are mostly calculated ueing data drawn from the financial statements of a firm, However, another aroup of ratios, called market value riatios, relate to a firm's observable market value, stock prices, and book values, integrating information from beth the market and the firm's finarioial statements, Consider the case of Cold Goose Metal Works inc: Cold Goose Metal Works Inc. just reported earnings after tao (also called net income) of $9,000,000 and a current stock price of 434.00 . per share. The company is forecasting an increase of 25% for its after-tax incoene next year, but it also expects it will have to issue 2,500,000 new shares of stock (reising its shares outstanding from 5,500,000 to 8,000,000 ). If Cold Goose's forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what doen the company's maragement expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) $29.23 per share $34,00 per share $21.92 per share $36.54 per share One year later, Cold Goose's shares are trading at $48.36 per share, and the company reports the value of its total cornmon equity as $46,768,000. Given this information, Cold Goose's market-to-book. (M/B) ratio is One year later, Cold Goose's shares are trading at $48.36 per share, and the company reports the value of its total cornmon equity as $46,768,000. Given this information, Cold Goose's market-to-book (M/B) ratio is Can a company's shares exhibit a negative P/E ratio? Which of the following statements is true about market value ratios? Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings. High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings