Bree's Tennis Supply's Market-To-Book Ratio Is Currently 9

question 116

Multiple Choice

Bree's Tennis Supply's market-to-book ratio is currently 9.4 times and PE ratio is 20 times. If Bree's Tennis Supply's common stock is currently selling at $20.50 per share, what is the book value per share and earnings per share?

• A) $1.025, $2.1809, respectively
• B) $2.1809, $1.025, respectively
• C) $410.00, $192.70, respectively
• D) $192.70, $410.00, respectively

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Definitions:

Simple Journal Entry

A basic accounting entry used to record transactions with only one debit and one credit.

Debit

An accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Credit

A financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Double-entry System

An accounting system where every transaction is recorded in at least two accounts, with debits equaling credits, ensuring the accounting equation is always in balance.