Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.31 times and PE ratio is 5.51 times. If Val's Volleyball Supply's common stock is currently selling at $9.80 per share, what is the book value per share and earnings per share? (Round your answer to 2 decimal places.)

Book Value per share is $2.96 and Earnings per share is $1.78

Explanation:

The market-to-book ratio is:

Market Value = 3.31 times

Book Value

The market value of the stock is $9.80 per share. Therefore, to calculate the Book Value, we make the Book Value subject and divide the ratio by Market Value per share:

Book Value per Share = Market Value per share

Market-to-Book ratio

= 9.80

3.31

= $2.96

The PE ratio is:

Price = 5.51 times

Earnings

The price of the stock is $9.80 per share. Therefore, to calculate the Earnings per share, we make the Earnings subject and divide the PE ratio by Price of stock:

Earnings per share = Price

PE Ratio

= 9.80

5.51

= $1.78