The Holtzman Corporation has assets of $414,000, current liabilities of $41,000, and long-term liabilities of $73,000. There is $36,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $29,600 in earnings available to common stockholders, and Holtzman's stock has a P/E of 16 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share?

The Holtzman Corporation has assets of $414,000, current liabilities of $41,000, and long-term liabilities of $73,000. There is $36,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $29,600 in earnings available to common stockholders, and Holtzman's stock has a P/E of 16 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share?

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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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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