The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) 2021 Assets Cash and securities $ 3,600 Accounts receivable 15,000 Inventories 17,400 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 16,896 Accruals 9,504 Notes payable 7,000 Total current liabilities $ 33,400 Long-term bonds 11,000 Total liabilities $ 44,400 Common stock 3,120 Retained earnings 12,480 Total common equity $ 15,600 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 60,000 Operating costs except depreciation 55,800 Depreciation 1,920 Earnings before interest and taxes (EBIT) $ 2,280 Less interest 1,080 Earnings before taxes (EBT) $ 1,200 Taxes (25%) 300 Net income $ 900 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $315.00 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $21.60 What is the firm's book value per share? Do not round your intermediate calculations. a. $31.20 b. $30.57 c. $36.00 d. $45.20 e. $24.96
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) 2021 Assets Cash and securities $ 3,600 Accounts receivable 15,000 Inventories 17,400 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 16,896 Accruals 9,504 Notes payable 7,000 Total current liabilities $ 33,400 Long-term bonds 11,000 Total liabilities $ 44,400 Common stock 3,120 Retained earnings 12,480 Total common equity $ 15,600 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 60,000 Operating costs except depreciation 55,800 Depreciation 1,920 Earnings before interest and taxes (EBIT) $ 2,280 Less interest 1,080 Earnings before taxes (EBT) $ 1,200 Taxes (25%) 300 Net income $ 900 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $315.00 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $21.60 What is the firm's book value per share? Do not round your intermediate calculations. a. $31.20 b. $30.57 c. $36.00 d. $45.20 e. $24.96
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
Related questions
Question
The
| Balance Sheet (Millions of $) | 2021 | |||
| Assets | ||||
| Cash and securities | $ | 3,600 | ||
| Accounts receivable | 15,000 | |||
| Inventories | 17,400 | |||
| Total current assets | $ | 36,000 | ||
| Net plant and equipment | 24,000 | |||
| Total assets | $ | 60,000 | ||
| Liabilities and Equity | ||||
| Accounts payable | $ | 16,896 | ||
| Accruals | 9,504 | |||
| Notes payable | 7,000 | |||
| Total current liabilities | $ | 33,400 | ||
| Long-term bonds | 11,000 | |||
| Total liabilities | $ | 44,400 | ||
| Common stock | 3,120 | |||
| 12,480 | ||||
| Total common equity | $ | 15,600 | ||
| Total liabilities and equity | $ | 60,000 | ||
| Income Statement (Millions of $) | 2021 | |||
| Net sales | $ | 60,000 | ||
| Operating costs except |
55,800 | |||
| Depreciation | 1,920 | |||
| Earnings before interest and taxes (EBIT) | $ | 2,280 | ||
| Less interest | 1,080 | |||
| Earnings before taxes (EBT) | $ | 1,200 | ||
| Taxes (25%) | 300 | |||
| Net income | $ | 900 | ||
| Other data: | ||||
| Shares outstanding (millions) | 500.00 | |||
| Common dividends (millions of $) | $315.00 | |||
| Int. rate on notes payable & L-T bonds | 6% | |||
| Federal plus state income tax rate | 25% | |||
| Year-end stock price | $21.60 |
What is the firm's book value per share? Do not round your intermediate calculations.
|
|||
|
|||
|
|||
|
|||
|
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education