Course Ch 04: Assignment - Analysis of Financial Statements x Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,250,000 and a current stock price of $12.00 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 3,000,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,500,000). A-Z 1 Green Caterpillar'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 stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) $9.71 per share $12.00 per share 57.28 per share $12.14 per share One year later, Green Caterpillar's shares are trading at 555.180 per share, and the company reports the value of its total common equity as $16.507.000. Given this information, Green Caterpillar's market to book (M/B) ratio is Can a company's shares exhibit a negative P/E ratio Yes Oto Which of the following statements is true about market value ratios 90 888 14 . P10 811 C # A $ 4 * % 5 & 7 + 6 OD 9 0 delete E R T Y U O { P its stock price to be one year from now? (Round any P/E ratio calculation to four decimal $9.71 per share O $12.00 per share $7.28 per share O $12.14 per share One year later, Green Caterpillar's shares are trading at $55.80 per share, and the company reports the value of its total common equity as 516,507,000. Given this information, Green Caterpillar's market-to-book (M/B) ratio is Can a company's shares exhibit a negative P/E ratio? 1.24 x Yes 43.14 x No 68.96 x Which of the following statements is true about market value ratios? 28.76 x 101 Companies with high research and development (R&D) expenses tend to have high P/E ratios. Companies with high research and development (RSD) expenses tend to have low P/E ratios