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Question 3 and 4

A Debunki 5 pts D Question 3 Edelman Engines has $18 million in total assets. Its balance sheet shows $2 million in current liabilities, $10 million in long-term debt, and S6 milion in common equity. It has 300,000 sharesof common stock outstanding, and its stock price is $26.40 per share. What is Edelman's market/book (M/B) ratio? Your answer should be between 1.04 and 1.96, rounded to 2 decimal places, with no special characters D | Question 4 5 pts Baxter International has an EPS of $2.80, a book value per share of $21.84, and a market/book ratio of 2.3X. What is its P/E ratio? Your answer should be between 16.26 and 30.48, rounded to 2 decimal places, with no special characters. D | Question 5 5 pts MacBook Pro G Search or type URL 5 6 8 9 0 0

Answer 1

3)

Market/Book ratio:

= Market price per share/Book value per share

= $26.40/($6,000,000/300,000)

= $26.40/$20

= 1.32

Hence, Market/Book ratio is 1.32