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Allison & Co. and Bee, Inc. reported the following numbers (in millions) for fiscal year 2014.  ...

Allison & Co. and Bee, Inc. reported the following numbers (in millions) for fiscal year 2014.  

Allison & Co. Bee, Inc.
Net income $ 485.70 $ 107.24
Shares outstanding 87.06 57.11
Stock price $ 81.59 $ 26.26
Total equity $ 1,628.30 $ 849.48

Calculate the earnings per share, market-to-book ratio, and price–earnings ratio for each company. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Allison & Co. Bee, Inc.
Earnings per share $ times $ times
Market-to-book ratio times times
Price–earnings ratio times times
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Answer #1
Ans.1 Earning per share =   Net income / no. of shares outstanding
Allison & co. 485.70 / 87.06 $5.58 times
Bee, Inc. 107.24 / 57.11 $1.88 times
Ans.2 Market to book ratio =   Market price per share / book value per share
Allison & co. 81.59 / 18.70 4.36 times
Bee, Inc. 26.26 / 14.87 1.77 times
Book value per share = Total Equity / No. of shares outstanding
Allison & co. 1628.30 / 87.06 18.70
Bee, Inc. 849.48 / 57.11 14.87
Ans.3 Price earning ratio   = Market price per share / Earning per share
Allison & co. 81.59 / 5.58 14.62 times
Bee, Inc. 26.26 / 1.88 13.97 times
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