Calculate the following market value ratios. Roberts Company had an average of 10,000 shares outstanding during 2012, the net income was $87,000, and the stock price on December 31, 2012 was $41.00. Depreciation Expense was $50,000. Total assets are $2,570,000 and total liabilities are $1,165,000.

a) P/E Ratio _____________ Price/Earnings per share

b) P/CF Ratio ____________

Price/cash flow per share Cash flow = Net income + NonCash Expenses

NonCash Expenses generally include depreciation and amortization

c) M/B Ratio _____________ Market price/Book value per share

How much investors are willing to pay for $1 of book value equity.