What is the ratio of market value per share to book value

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Phelps Labs has assets of $441,000, current liabilities of $105,000, and long-term liabilities of $147,000. There is $31,500 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.)

  • Book value per share $

Question b. If there is $32,700 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 24 times EPS, what is the current price of the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

  1. Current price $

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: EM132482566

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