Calculate reef cinema earnings per share

Assignment Help Business Management
Reference no: EM131898489

Reef Cinema Corporation has a current market price for its stock of $40 per share. The latest annual report showed net income of $2,250,000 and total common stock equity of $15 million. The report also listed 1,750,000 shares of common stock outstanding. No common stock dividends are paid.

a. Calculate Reef Cinema's earnings per share (EPS).

b. Calculate Reef Cinema's price to earnings (P/E) ratio.

c. Calculate Reef Cinema's book value per share.

d. What is Reef Cinema's market to book ratio?

e. Based on this information, does the market believe that the future earning power of Reef Cinema Corporation justifies a higher value than could be obtained by liquidating the firm? Why or why not?

Reference no: EM131898489

Questions Cloud

Create schedule of cost of goods manufactured for the year : The following data refer to XYZ Fashions Company for the year 2016, Sales revenue - $1,000,000. Create schedule of cost of goods manufactured for the year
How many copies should printing services print : University Printing Services offer a program of reproducing class notes for participating professors teaching large classes with an enrollment uniformly
Complete a 5 page essay on serial killerluis garavito : (Luis Garavito) Serial Killer and complete a 5 page essay on him.How they started their killing spree.
Produce company counterclaimed against benkley : The produce company counterclaimed against Benkley for his failure to deliver the additional 400 tons. Who will prevail? Why?
Calculate reef cinema earnings per share : a. Calculate Reef Cinema's earnings per share (EPS). b. Calculate Reef Cinema's price to earnings (P/E) ratio.
What are some personal values that influence your culture : What are some universal values that influence your culture? How do universal and personal values influence your own health-related decisions?
Compute the margin of safety ratio assuming actual sales : Presto Company makes radios that sell for $26 each. Compute the margin of safety ratio assuming actual sales are $811,000
Describe the crime funnel for index crimes reported : Describe the crime funnel for index crimes reported to the FBI, and explain how the number of people in prison and on parole.
Delivering a negative message : What special circumstances does a communicator need to consider when delivering a negative message?

Reviews

Write a Review

Business Management Questions & Answers

  The result of deviations in performance not changes in metho

The same accounting methods should be applied from period to period and all changes to more acceptable methods should be well explained and justified. Deviations in measured outcomes from period to period should be the result of deviations in perform..

  Define google strategy

Discuss and define Google strategy.

  Dynamic decision making in betting

Dynamic decision making in betting - basketball player is averaging 25 points per game over the season.

  Expected rate of depreciation of the mexican peso

a. Calculate the inflation rates in Mexico and the US. b. Calculate the nominal interest rate in each country. c. Calculate the expected rate of depreciation of the Mexican peso relative to the US dollar.

  What is the probability that the length of the yellowtail

a. Suppose 1 yellowtail is selected at random. What is the probability that the length of the yellowtail is more than 41 inches? b. Suppose 32 yellowtail are selected at random. What is the probability that the sample mean length is greater than 41 i..

  What do you recommend be done when an error is found

What do you recommend be done when an error is found in a pack as it is opened for an operation?

  Three classifications of decision making

Which of the three classifications of decision making---unstructured, semi-structured, or structured---benefit most from a management information system (MIS), a decision support system (DSS), or from an executive support system (ESS)?

  Detailed job descriptions for every position

Do you believe having highly detailed job descriptions for every position can interfere with group effectiveness? If so, is there anything that can be done to avoid this?

  Explain the meaning of business communications

Explain the meaning of business communications. What are its mode and process?

  Explain the effects of sunk costs and opportunity costs

Explain the effects of sunk costs and opportunity costs in deciding whether to accept a project.

  Create an appropriate organizational chart

Create an appropriate organizational chart for each of the following business based on the limited information provided. Be sure to include logical department.

  Identify the organization and the specifics of the incident

Identify the organization and the specifics of the incident. Determine who was harmed, who caused the harm, what damage occurred

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd