Solve this Accounting problem Eldora Systems is a privately-held firm. You are asked toestimate its value using market data from a comparablepublic firm. The comparable firm has a stock price of$32.00, net income of $48,000, and 12,000 sharesoutstanding. Eldora Systems has an earnings per share(EPS) of $4.00.What is the estimated value per share of Eldora Systems?A) $12.00B) $16.00C) $20.00D) $32.00E) $28.00

Step 1: Definition of Estimated Value per ShareThe Estimated Value per Share refers to the…

Answered: Eldora Systems is a privately-held…

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 66P

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(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,391,000. Furthermore, the firm's income statement for the year just ended has a net income of $505,000, which is $0.232 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 20.54. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.)
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,314,000. Furthermore, the firm's income statement for the year just ended has a net income of $578,000, which is $0.264 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.81. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.) C...
You have been assigned to value the stock of XYZ a small illiquid company. Their recent income statement shows that earnings were $30,589,307 and they have 9,719,532 shares outstanding. You have found a very similar firm with publicly traded stock, ABC, which recently reported EPS of $2.358 and its stock is currently selling for $39.31. Use the P/E ratio of ABC to establish a reasonable price for the target firm XYZ. O $50.16 O $52.47 O $57.02 O $39.31 $5.30
What is it's price earnings ratio on these financial accounting question?
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share total shares outstanding) of $1,367,000. Furthermore, the firm's income statement for the year just ended has a net income of $513,000, which is $0.276 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 19.86. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $. (Round to the nearest cent.)
(Market value analysis)The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per sharetimestotal shares outstanding) of $ 1,369,000. Furthermore, the firm's income statement for the year just ended has a net income of $ 505,000, which is $ 0.243 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 18.55. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? Question content area bottom Part 1 a.What price would you expect Underwood Motors shares to sell for? The market price per share is $4.51.(Round to the nearest cent.) Part 2 b.What is the book value per share for Underwood's shares? The book value per share is $ ??? enter your response here. (Round to the nearest cent.)
On the balance sheet of Bearcat Inc., you notice "Common Stock ($0.10 par)" of $248,655, "Capital Surplus" of $282,621, and "Retained Earnings" of $210,534. If Bearcat Inc. has Sales of $292,6836 and a profit margin of 30.52%, what is the price/earnings (P/E) ratio of the firm if their stock is currently selling for $21.94 per share? O None of these options are correct 67.18 54.97 240.97 61.07 DISCL
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(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,343,000. Furthermore, the firm's income statement for the year just ended has a net income of $530,000, which is $0.265 per share of common stock outstanding The price-earnings ratio for firms similar to Underwood Motors 20.91 a. What price would you expect Underwood Motors shares to sell for? b. What is the book vidue por share for Underwood's sharus? What price would you expect Underwood Motors shares to sell for? The market price per shares S (Round to the nearest cent)

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