Dudley Hill Golf Club\'s market-to-book ratio is currently 1.8 times and the PE

Question

Dudley Hill Golf Club's market-to-book ratio is currently 1.8 times and the PE ratio is 6.40 times. Dudley Hill Golf Club's common stock is currently selling at $14.94 per share.

What is the book value per share? (Round your answer to 2 decimal places.)

What is the earnings per share? (Round your answer to 2 decimal places.)

Dudley Hill Golf Club's market-to-book ratio is currently 1.8 times and the PE ratio is 6.40 times. Dudley Hill Golf Club's common stock is currently selling at $14.94 per share.

Explanation / Answer

market to book ratio= market price/ book price

1.8= $14.94/book price

book price= 14.94/1.8= $8.3

price earnings ratio= market price of the share/ EPS

6.40= $14.94/EPS

EPS= 14.94/6.40

EPS= $2.3343

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