Reference no: EM132771220

The Balance Sheets of Lopez Company at the end of each of the first two years of operations indicate the following: (in thousands)

                                                                   2011                   2010
Total Current Assets                         P600                   P560
Total Investments                               60                      40
Total PPE                                           900                    700
Total Current Liabilities                           150                   80
Total Long term Liabilities                      350                   250
Preferred 9% stock, 100 par                  100                 100
Common stocks, 10 par                          600                  600
APIC in excess of PAR-common                    60              60
Retained Earnings                                  300              210

Net Income is P 115,000.00 and interest expense is P30,000.00 for 2011.

Problem 1. What is the rate of return on equity for 2011?

Problem 2. What is the Earnings per share on common stocks for 2011?

Problem 3. If the Price earnings ratio is 17:1, What is the market value per share of common stock?