market price of Stargel common stock was $119.70 on December 31, 20Y2. It was $98.85 on December 31, 20Y1. Price/Earnings (P/E) ratio = Market price per common share / Earnings per share (Note: Earnings per share= (Net income - Preferred dividends) / Average common shares outstanding) Year 20Y2 Numerator Denominator P/E 20Y1 Competitor: 10.6 Industry Average: 15.0 Year 20Y2 Market/Book (M/B) ratio = Market price per share / Book value per share (Note: Book value per share = Common stockholders' equity / Common shares outstanding) Numerator Denominator M/B 20Y1 Competitor: 1.4 Industry Average: 2.5 Market Value Evaluation: Should either of these ratios or the change in a ratio warrant concern for the managers of Stargel or the shareholders