The formula to calculate Price Book Value Ratio (PB) is:
\[ PB = \frac{CD}{P} \]
Where:
Price to Book Value Ratio is a relation between the actual share price and the share's book value.
Cash Dividend is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits.
Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock.
Let's assume the following values:
Using the formula:
\[ PB = \frac{12000}{50} \]
Evaluating:
\[ PB = 240 \]
The Price Book Value Ratio is 240.
| Cash Dividend | Market Price per Share | Price Book Value Ratio |
|---|---|---|
| 11000 | 45 | 244.44 |
| 11000 | 46 | 239.13 |
| 11000 | 47 | 234.04 |
| 11000 | 48 | 229.17 |
| 11000 | 49 | 224.49 |
| 11000 | 50 | 220.00 |
| 11000 | 51 | 215.69 |
| 11000 | 52 | 211.54 |
| 11000 | 53 | 207.55 |
| 11000 | 54 | 203.70 |
| 11000 | 55 | 200.00 |
| 11500 | 45 | 255.56 |
| 11500 | 46 | 250.00 |
| 11500 | 47 | 244.68 |
| 11500 | 48 | 239.58 |
| 11500 | 49 | 234.69 |
| 11500 | 50 | 230.00 |
| 11500 | 51 | 225.49 |
| 11500 | 52 | 221.15 |
| 11500 | 53 | 216.98 |
| 11500 | 54 | 212.96 |
| 11500 | 55 | 209.09 |
| 12000 | 45 | 266.67 |
| 12000 | 46 | 260.87 |
| 12000 | 47 | 255.32 |
| 12000 | 48 | 250.00 |
| 12000 | 49 | 244.90 |
| 12000 | 50 | 240.00 |
| 12000 | 51 | 235.29 |
| 12000 | 52 | 230.77 |
| 12000 | 53 | 226.42 |
| 12000 | 54 | 222.22 |
| 12000 | 55 | 218.18 |
| 12500 | 45 | 277.78 |
| 12500 | 46 | 271.74 |
| 12500 | 47 | 265.96 |
| 12500 | 48 | 260.42 |
| 12500 | 49 | 255.10 |
| 12500 | 50 | 250.00 |
| 12500 | 51 | 245.10 |
| 12500 | 52 | 240.38 |
| 12500 | 53 | 235.85 |
| 12500 | 54 | 231.48 |
| 12500 | 55 | 227.27 |
| 13000 | 45 | 288.89 |
| 13000 | 46 | 282.61 |
| 13000 | 47 | 276.60 |
| 13000 | 48 | 270.83 |
| 13000 | 49 | 265.31 |
| 13000 | 50 | 260.00 |
| 13000 | 51 | 254.90 |
| 13000 | 52 | 250.00 |
| 13000 | 53 | 245.28 |
| 13000 | 54 | 240.74 |
| 13000 | 55 | 236.36 |