Problem 19-5 Price Ratios (LO3, CFA6) You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 204,000 $ 2,000 $369,000 $ 80,000 $ 7,400 $ 10,000 Price-book ratio Price-earnings ratio Price-cash flow ratio 21% $ 16,000 $ 21,000 $ 28,000 $36,000 $ 163,000 $5,000 $ 40,000 $ 35,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Problem 19-5 Price Ratios (LO3, CFA6) You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 204,000 $ 2,000 $369,000 $ 80,000 $ 7,400 $ 10,000 Price-book ratio Price-earnings ratio Price-cash flow ratio 21% $ 16,000 $ 21,000 $ 28,000 $36,000 $ 163,000 $5,000 $ 40,000 $ 35,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
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
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Transcribed Image Text:Problem 19-5 Price Ratios (LO3, CFA6)
You are given the following information for Smashville, Incorporated.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
Long-term debt:
Other assets:
Fixed assets:
Other liabilities:
Investments:
Operating assets:
$ 204,000
$ 2,000
$369,000
$ 80,000
$ 7,400
$ 10,000
Price-book ratio
Price-earnings ratio
Price-cash flow ratio
21%
$ 16,000
$ 21,000
$ 28,000
$36,000
$ 163,000
$5,000
$ 40,000
$ 35,000
During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of
the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
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