Market Value Ratios. If the market value of Phone Corp. stock was $17.2 billion
ID: 2636342 • Letter: M
Question
Market Value Ratios. If the market value of Phone Corp. stock was $17.2 billion at the end of the year, what was the market-to-book ratio? If there were 205 million shares outstanding, what were earnings per share? The price-earnings ratio?
Here is a list of the other ratios from this company
Long term debt ratio 7018/7018+9724=0.42
Total debt ratio 4794+7018+6178/27714=0.65
Times interest earned 2566/685=3.75
Cash coverage ratio 2566+2518/685=7.42
Current ratio 3525/4794=0.74
Quick ratio 89+2382/4794=0.52
Operating profit margin 1311+685/19139=0.151 or 15.1%
Inventory turnover 4060/((1897+238)/2)=19.11
Day in inventory ((187_238)/2)/(4060/356)=19.10 days
Average collection period ((2382+2490)/2)/(13193/365)=67.39 days
Return on equity 1311/((9724+9121)/2)=0.139 or 13.9%
Return on assets 1311+685/(27714+27503)/2=0.072 or 7.2%
Payout ratio 856/1311=0.65
Explanation / Answer
Market-to-book ratio = $17.2 billion/$9.724 billion = 1.77
Earnings per share = $1,311 million/205 million = $6.40
Price-earnings ratio = $17.2 billion/$1.311 billion = 13.1