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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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
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