Total assets of a firm are $2,000,000, and the total liabilities are $1,000,000. 1,000,000 shares of common stock have been issued and 500,000 shares are outstanding. The market price of the stock is $20, and Net Income for the past year was $300,000. Calculate the book value of the firm. Calculate the book value per share. Calculate the P/E ratio.

Total assets of a firm are $2,000,000, and the total liabilities are $1,000,000. 1,000,000 shares of common stock have been issued and 500,000 shares are outstanding. The market price of the stock is $20, and Net Income for the past year was $300,000. Calculate the book value of the firm. Calculate the book value per share. Calculate the P/E ratio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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