You are given the following information: Stockholders' equity = $3.75 billion; price/earnings ratio = 3.5; common shares outstanding = 50 million; and market/book ratio = 1.9. Calculate the price of a share of the company's common stock.

bunnyKutty

Book value of shares = 3,750,000,000
Common shares = 50,000,000
Book value per share = 3,750,000/ 50,000,000
= $75

Market/ book ratio = Market value per share/ bookvalue per share = 1.9
Market value per share = 1.9 x 75 = $142.50