Find ratio of market value per share to book value per share

Assignment Help Finance Basics

Reference no: EM131933024

Question: Amigo Software Inc. has total assets of $889,000, current liabilities of $192,000, and long-term liabilities of $154,000. There is $87,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.

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

b. If there is $56,300 in earnings available to common stockholders, and the firm's stock has a P/E of 23 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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

Reference no: EM131933024

Questions Cloud

What return does sherry need to earn in order : If Jack were to save $6,000 each year, what return does sherry need to earn in order to reach his goal of $2 million.

What is the value per share using the stable growth model : Ameritech Corporation paid dividends per share of $3.56, and dividends are expected to grow 5.5% a year forever. The stock has a beta of 0.90.

How much will greg have at the end of the four years : Greg deposits $10,000 in a bank account that pays 3% interest annually. How much will Greg have at the end of the four years?

What strategic role did design play at gillette : Comment on the aggressive marketing and rollout plans used by Gillette to support their product launches. Would you recommend they take it slower?

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

What is the present value of cash flows : What is the present value of these cash flows, using a required return of 7%?

Compute the cash payback period and net present value : Palo Alto Corporation is considering purchasing a new delivery truck. Compute the cash payback period and net present value of the proposed investment

Required rate of return : What is the price of the stock today if the company recently paid the annual dividend of $4 and the required rate of return is 15%?

Balance sheet to potential investors in the company : One way to look at a balance sheet is in terms of the "sources" and "uses" of cash. Of what use is the balance sheet to potential investors in the company?

User Account

All Pages