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Consider the case of Green Caterpillar Garden Supplies Inc. Green Caterpillar Garden Supplies Inc. Just reported earnings after tax (also called net income) of $95,000,000

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Consider the case of Green Caterpillar Garden Supplies Inc. Green Caterpillar Garden Supplies Inc. Just reported earnings after tax (also called net income) of $95,000,000 and a current stock price of $54.00 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 Issue 2,800,000 new shares of stock (raising its shares outstanding from 5,500,000 to 3,300,000). If Green Caterpillar's forecast turns out to be correct and its pricelearnings (P/E) ratio does not change, what does the company's its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) 325.17 per share $34.00 per share $21.13 per share $35.21 per share One year later, Green Caterpillar's shares are trading at $48.36 per share, and the company reports the value of its total common equity as $46,752,200. Given this information, Green Caterpillar's market to book (H/B) ratio is e soco Is it possible for a company to exhibit a negative EPS and thus a negative P/E ratio? No Yes ols Which of the following statements is true about market value ratios? w High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings. aductory Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings Grade It How Continue without

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