(Related to Checkpoint 4.4) (Market value analysis)Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per

sharetotal

shares outstanding) is

$751,100.

The firm's earnings per share are

$3.03,

which produces a price-earnings ratio of

12.22.

If there are

50,000

shares of common stock outstanding, what is the firm's market-to-book ratio (i.e., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?

The market-to-book ratio is

nothing.

(Round to two decimal places.)

What does the market-to-book ratio tell us?(Select the best choice below.)

A.This means that investors are willing to pay

$2.47

for each

$3.03

of shareholders' equity in the company's books.

B.This means that investors are willing to pay

$2.47

for each

$1

of shareholders' equity in the company's books.

C.This means that investors are willing to pay

$3.03

for each

$2.47

of shareholders' equity in the company's books.

D.This means that investors are willing to pay

$1

for each

$2.47

of shareholders' equity in the company's books.