Market Value Ratios. If the market value of Phone Corp. stock was $17.2 billion

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

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