Compute book value and net worth per share

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Phelps Labs has assets of $1,800,000, current liabilities of $595,000, and long-term liabilities of $630,000. There is $165,000 in preferred stock outstanding; 20,000 shares of common stock have been issued.

Question a. Compute book value (net worth) per share. (Round the final answer to 2 decimal places.)

Question b. If there is $45,000 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 13 times EPS, what is the current price of the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Question c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Reference no: EM132522557

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