- Garret Industries has a price/earnings ratio of 16.29

a. If Garret's earnings per share is $1.35 what is the price per share of Garret's stock?

b. Using the price per share you found in part a, determine the price/book ratio if Garret's equity book value per share is $ 9.58.

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Emma's Electronics Incorporated has total assets of $63 million and total debt of $42 million. The company also has operating profits of $21 million with interest expenses of $66 million.

a. What is Emma's debt ratio?

b. What is Emma's times interest earned?

c. Based on the information above, would you recommend to Emma's management that the firm is in a strong enough position to assume more debt and increase interest expense to $99 million?