Please Provide Answer of this Financial Accounting Question Amigo Software, Inc., has total assets of $800,000, currentliabilities of $150,000, and long-term liabilities of $120,000.There is $65,000 in preferred stock outstanding. Thirtythousand shares of common stock have been issued.a. Compute book value (net worth) per share.b. If there is $48,000 in earnings available to commonstockholders and the firm's stock has a P/E of 20 timesearnings per share, what is the current price of the stock?c. What is the ratio of market value per share to book value pershare?

Step 1: Define Book Value and P/E Ratio:Book Value per share is given as the total assets minus the…

Answered: Amigo Software, Inc., has total assets…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
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Amigo Software Inc. has total assets of $823,000, current liabilities of $248,000, and long-term liabilities of $147,000. There is $71,000 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.) Book value per share b. If there is $49,000 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.) Current price 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.) Market value to book value times
The balance sheet for Larry underwood motors shows a book value of stockholder’s equity ( book value per share x total shares outstanding) of $1,396,000. Furthermore, the firm’s income statement for the year just ended has a net income of $501,000, is $0.282 per share of common stock outstanding. The price earnings ratio for firm’s similar to underwood motors is 19.94. A. What price would you expect underwood motors shares to sell for? The market price per share is Round to the nearest cent.
The Gizmo, Inc. has just announced year-end results as follows: a. Calculate the book value per share. b. Calculate earnings per share. c. Calculate Gizmo, Inc.'s dividend yield. d. Calculate the market-to-book ratio. a. The book value per share is $ Value of company assets Value of company liabilities Net income Common stock dividends Preferred stock dividends (Round to the nearest cent.) Number of shares of common stock outstanding Closing price of Gizmo, Inc.'s stock $11,440,000 $5,597,242 $1,661,997 $180,572 $427,107 831,680 $43.77 per share
The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share×total shares outstanding) of $1,332,000. Furthermore, the firm's income statement for the year just ended has a net income of $523,000, which is $0.251 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.18. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?
The market value balance sheet for MZ Toys reflects cash of $32,000, fixed assets of $687,000, debt of $285,000, and equity of $479,000. The firm declared a stock dividend of 15 percent and tomorrow is the ex-dividend date (the chronology for a stock dividend is similar to that for a cash dividend). There are 12,000 shares outstanding. What is the ex-dividend stock price?
You are given the following information: Stockholders' equity - $359 million; price/earnings = ratio 45; shares outstanding = 8,600,000; and market/book ratio = 5.45. Calculate the market price of a share of the company's stock. a. $41.74. b. $227.51. c. $185.76. d. $243.97. e. $38.48.
The balance sheet for Larry Underwood Motors shows a book value of stockholders’ equity (book value per share × total shares out- standing) of $1,300,000. Furthermore, the firm’s income statement for the year just ended has a net income of $500,000, which is $0.25 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 20. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood’s shares?
Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per share×total shares outstanding) is $750,800. The firm's earnings per share are $3.24, which produces a price-earnings ratio of 12.32. If there are 49,000 shares of common stock outstanding, what is the firm's market-to-book ratio (i.e., the ratio of price per share to book value per share)? What does the market-to-book ratio tell us?

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