Calculate the price-book ratio and price-earnings ratio

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You are given the following information for Smashville, Inc.

Cost of goods sold:$119,000

Investment income:$2,300

Net sales:$232,000

Operating expense:$40,000

Interest expense:$7,400

Dividends:$11,000

Tax rate:21%

Current liabilities:$18,000

Cash:$21,000

Long-term debt:$25,000

Other assets:$39,000

Fixed assets:$126,000

Other liabilities:$5,000

Investments:$43,000

Operating assets:$45,000

Problem 1: During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. At the end of the year, Smashville stock sold for $52 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM132668670

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