Analyzing market values using financial ratios)On May 25, 2009, the stock of Emerson Electric (EMR) was trading for $32.18 per share, whereas the stock of its larger rival, General Electric Corporation (GE), was trading for only $13.11. Interpret the relative pricing of the two firms' shares using the information found here:.

It appears that Emerson Electric enjoys a (lower or higher) price per share when compared to its 2009 earnings and also a(lower or higher( price when compared to the book value of the firm's equity. Thus, investors are willing to pay (less or more) for each share of Emerson Electric than for each share of General Electric.(Select from the drop-down menus.)