You are considering an investment in Roxies Bed and Breakfast Corp.
Market Value Ratios
Market value ratios indicate how the common stock of a company is assessed in the capital market. The important market value ratios are Book value per share, earnings per share, market-to-book ratio, price-earnings ratio, and dividend yield.
Market Value Ratios
Book value per share = Common Equity/No of shares outstanding
= $46m / 20m
= $2.30
Earnings per share = Net Income/No of shares outstanding { where net income = retained earnings + dividends = 10.80 + 3.20 = $14m}
=$14m / 20m
= $0.7 per share
Market-to-book ratio = Market value per share/Book value per share
= $8.90 / $2.30
= 3.87 times
Price-earnings ratio = Market price per share/Earnings per share
$8.90 / $0.7
= 12.71 times.
You are considering an investment in Roxies Bed and Breakfast Corp during the last year the firm's income statement listed an addition to reatian of? The addition to reatian mentioned in the income statement of Roxies Bed and Breakfast Corp during the last year is $10.80 million.