Due Friday 08 29.28 at 5 Attom Average: 4 2. Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a firm.Hoever, another group of ratios, called market-based ratios, relate to afirm's observable market value,stock prices, and book values, integrating information from both the market and the firm's financial statements Consider the case of Green Caterpilar Garden Supplies tnc: Green caterpillar Garden Supplies Inc just reported eamings after tax (aso called net income) of $9,250,000, and a current stock price of $39.50 per share. mecompany is forecasting in tase of 2S%for its ahertax none net year, but it also expects it will have to issue 3,000,000 new shares of stock traising its shares outstanding from 5,500,000 to 8,500,000). If Green Caterpiltars forecast tums out to be correct and its price-to-eamings (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 decim l paces) O 431 98 per share O $39.50 per share O $23.99 per share 0 $39.98 per share one year later, Green Caterpatars shares tradit isao tar, te emery /epots the ralued its totat: common equity as $5366 00o diven Ns information, Green Caterptars market to-book ratis Is it possible for a company to exNDRa negaies and thus e O No o yes which of the following statements true about market value faros7 nat 0" ne taios. O companies with high researen and development R&Depeststend t SD) tend to have nig Due Friday 08 29.28 at 5 Attom Average: 4 2. Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a firm.Hoever, another group of ratios, called market-based ratios, relate to afirm's observable market value,stock prices, and book values, integrating information from both the market and the firm's financial statements Consider the case of Green Caterpilar Garden Supplies tnc: Green caterpillar Garden Supplies Inc just reported eamings after tax (aso called net income) of $9,250,000, and a current stock price of $39.50 per share. mecompany is forecasting in tase of 2S%for its ahertax none net year, but it also expects it will have to issue 3,000,000 new shares of stock traising its shares outstanding from 5,500,000 to 8,500,000). If Green Caterpiltars forecast tums out to be correct and its price-to-eamings (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 decim l paces) O 431 98 per share O $39.50 per share O $23.99 per share 0 $39.98 per share one year later, Green Caterpatars shares tradit isao tar, te emery /epots the ralued its totat: common equity as $5366 00o diven Ns information, Green Caterptars market to-book ratis Is it possible for a company to exNDRa negaies and thus e O No o yes which of the following statements true about market value faros7 nat 0" ne taios. O companies with high researen and development R&Depeststend t SD) tend to have nig
