Blue Hamster Manufacturing Inc. just reported earnings after tax $($also called net income$)$ of $$8,000,000$ and a current stock price of $$34\mathrm{.}00-$per share. The company is forecasting an increase of $25\%$ for its after$-$tax income next year, but it also expects it will have to ssue $1,500,000$ new shares of stock $($raising its shares outstanding from $5,500,000$ to $7,000,000).$

ue Hamster's forecast turns out to be correct and its price$/$earnings $($P$/$E$)$ ratio does not change, what does the company's management expect its k price to be one year from now? $($Round any P$/$E ratio calculation to four decimal places.$)$

$$33\mathrm{.}53$ per share

$$34\mathrm{.}00$ per share

$$25\mathrm{.}15$ per share

$$41\mathrm{.}91$ per share

year later, Blue Hamster's shares are trading at $$54\mathrm{.}56$ per share, and the company reports the value of its total common equity as $$46,942,000.$ n this information, Blue Hamster's market$-$to$-$book $($M$/$B$)$ ratio is

possible for a company to exhibit a negative EPS and thus a negative P$/$E ratio?

Yes

No