Problem:
Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share?
- $9.5238, $22.2222, respectively
- $1050, $450, respectively
- $450, $1050, respectively
- $22.2222, $9.5238, respectively
Note: Provide support for your rationale.