b. Compute the firm's operating profit margin. c. What was the times interest earned? 4-4. (Price/book) Chang, Inc.'s balance sheet shows a stockholders' equity book value (total common equity) of $750,500. The firm's earnings per share were $3, resulting in a price/ earnings ratio of 12.25X. There are 50,000 shares of common stock outstanding. What is the price/book ratio? What does this indicate about how shareholders view Chang, Inc.?

b. Compute the firm's operating profit margin. c. What was the times interest earned? 4-4. (Price/book) Chang, Inc.'s balance sheet shows a stockholders' equity book value (total common equity) of $750,500. The firm's earnings per share were $3, resulting in a price/ earnings ratio of 12.25X. There are 50,000 shares of common stock outstanding. What is the price/book ratio? What does this indicate about how shareholders view Chang, Inc.?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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