PLEASE SOLVE ASAP! will rate thank you!! Look at pic for more details Market value ratios

Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm'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 Cute Camel Woodcraft Company:

Cute Camel Woodcraft Company just reported earnings after tax $($also called net income$)$ of $$9,000,000$ and a current stock price of $$20\mathrm{.}25$ 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 $2,500,000$ new shares of stock $($raising its shares outstanding from $5,500,000$ to $8,000,000).$

If Cute Camel'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.$)$

$$17\mathrm{.}41$ per share

$$20\mathrm{.}25$ per share

$$13\mathrm{.}06$ per share

$$21\mathrm{.}76$ per share

One year later, Cute Camel's shares are trading at $$49\mathrm{.}60$ per share, and the company reports the value of its total common equity as $$27,856,000.$ Given this information, Cute Camel's market$-$to$-$book $($M$/$B$)$ ratio is

Can a company's shares exhibit a negative P$/$E ratio?

Yes

No

Which of the following statements is true about market value ratios?

High P$/$E ratios could mean that the company has a great deal of uncertainty in its future earnings.

Low P$/$E ratios could mean that the company has a great deal of uncertainty in its future earnings.