Atlantic Northern Inc. just reported a net income of $$6,000,000,$ and its current stock price is $$25\mathrm{.}75$ per share. Atlantic Northern is forecasting an increase of $25\%$ for its net income next year, but it also expects it will have to issue $2,300,000$ new shares of stock $($raising its shares outstanding from $5,500,000$ shares to $7,800,000$ shares$).$

If Atlantic Northern$$s forecast turns out to be correct and its price$-$to$-$earnings $($P$/$E$)$ ratio does not change, what does management expect its stock price to be one year from now?

$$22\mathrm{.}68$ per share

$$25\mathrm{.}75$ per share

$$17\mathrm{.}01$ per share

$$28\mathrm{.}35$ per share

One year later, Atlantic Northern Inc.$$s stock is trading at $$44\mathrm{.}25,$ and the company reports its common equity value as $$35,380,800.$ What is Atlantic Northern Inc.$$s market$-$to$-$book $($M$/$B$)$ ratio?

Can a company$$s stock have a negative P$/$E ratio?