What is the book value per share for underwood shares

Assignment Help Accounting Basics
Reference no: EM133099097

Question - Market value analysis - The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,366,000. Furthermore, the firm's income statement for the year just ended has a net income of $525,000, which is $0.278 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.66.

Required -

a. What price would you expect Underwood Motors shares to sell for?

b. What is the book value per share for Underwood's shares?

Reference no: EM133099097

Questions Cloud

Overhaul of a healthcare industry : Explain with examples on how external factors are involved in the overhaul of a healthcare industry. Mention at least one health care industry.
Write an essay of approximately referring : Write an essay of approximately referring to the three different texts provided. You may use additional texts to support your answer. Task 1: Some people think
How much of the premium will be amortized on december : Assuming an effective interest rate of 5 percent, approximately how much of the premium will be amortized on December 31, 2016
Barcelona locals hate tourists : In Barcelona, Spain, the increase in tourism and growing counter-movement by locals have been observed in recent years. The aggressive behaviour towards tourist
What is the book value per share for underwood shares : Furthermore, the firm's income statement for the year just ended has a net income of $525,000, What is the book value per share for Underwood shares
Example of products under dependent demand : Give a detailed example of products under independent demand and an example of products under dependent demand
Measure customer satisfaction : How can a company use Porter's Value Chain Analysis to measure customer satisfaction?
Why is consumer choice important in health care marketing : Why is consumer choice important in health care marketing, and why is it essential for medical tourism?
Describe how the fair labor and standards act relates : Describe how the Fair Labor and Standards Act (FLSA) relates to minimum wage and overtime

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the company debt ratio

The company's current assets were $76,000, out of a total asset figure of $424,000. Calculate the company's debt ratio

  Sole proprietorship and changing to a corporation

Jumpin-JehoSaphats is owned by Jessica Jean (JJ)Saphats.  Jessica wants to incorporate her business but is not sure of the differences between the current form of sole proprietorship and changing to a corporation.   She has come to you to discuss ..

  How much is the loss on repayment of government

Government demanded repayment of the ?16,000,000 given as grant in 20x1. How much is the loss on repayment of government grant recognized in 20x3?

  Prepare the bond schedule showing interest paid per period

Prepare the bond schedule showing interest paid per period, interest expense recorded for each payment period

  How estimate the fixed cost of electricity per month

The Cheyenne Hotel in Big Sky, Montana, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.

  What is the share premium upon exercise

On January 1, 2017 Kamagong Company granted 100 share options each to 500 employees, What is the share premium upon exercise

  What is net realizable value of Cowen accounts receivable

Use the preceding analysis to compute the estimated amount of uncollectible receivables. What is net realizable value of Cowen accounts receivable

  What is the company cost of common equity

ACT Limited has a target capital structure of 40% debt and 60% equity. What is the company's cost of common equity

  Compute the total fraud and negligence penalties incurred

A portion of the underpayment was shown to be attributable to Blair's negligence ($100,000). Compute the total fraud and negligence penalties incurred

  By how much did the firm net income exceed

The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, By how much did the firm net income exceed

  The following situations are similar all involve the theft

the following situations are similar all involve the theft of makotos laptop computer yet they represent different

  Make General Journal entries o record the events

Use this information to General Journal entries (without explanation) required to record the events for December 31, 2018

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