Financial Analysis for Company Q

What is the market-to-book ratio and PE ratio for company Q?

What is the current selling price of company Q's common stock?

What is the book value per share and earnings per share for company Q?

Market-to-Book Ratio and PE Ratio:

The market-to-book ratio for company Q is 3.36 times and the PE ratio is 5.56 times.

Current Selling Price:

Company Q's common stock is currently selling at $10.05 per share.

Company Q's market-to-book ratio of 3.36 times indicates that the market value of the company is 3.36 times higher than its book value. This ratio is commonly used to evaluate the valuation of a company in relation to its book value.

PE ratio, on the other hand, stands for price-to-earnings ratio and it reflects how much investors are willing to pay for each dollar of earnings of the company. With a PE ratio of 5.56 times, it suggests that investors are willing to pay 5.56 times the company's earnings per share.

Given that company Q's common stock is selling at $10.05 per share, we can calculate the book value per share and earnings per share:

Book Value per Share: The book value per share is calculated by dividing the current market price per share by the market-to-book ratio. Therefore, $10.05 / 3.36 = $2.99 (approximately).

Earnings per Share: The earnings per share is calculated by dividing the current market price per share by the PE ratio. Hence, $10.05 / 5.56 = $1.81 (approximately).

In conclusion, the book value per share for company Q is approximately $2.99 and the earnings per share is approximately $1.81. These figures provide insights into the company's valuation and profitability metrics.

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