You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $7.80 million and common stock dividends of $2.70 million. Roxie's year-end balance sheet shows common stockholders' equity of $40.5 million with 15 million shares of common stock outstanding. The common stock's market price per share was $9.50. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.) Book value per share What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.) Earnings per share Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market-to-book ratio times
You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $7.80 million and common stock dividends of $2.70 million. Roxie's year-end balance sheet shows common stockholders' equity of $40.5 million with 15 million shares of common stock outstanding. The common stock's market price per share was $9.50. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.) Book value per share What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.) Earnings per share Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market-to-book ratio times
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
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Transcribed Image Text:You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition
to retained earnings of $7.80 million and common stock dividends of $2.70 million. Roxie's year-end balance sheet shows common
stockholders' equity of $40.5 million with 15 million shares of common stock outstanding. The common stock's market price per share
was $9.50.
What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.)
Book value per share
What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.)
Earnings per share
Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Market-to-book ratio
times
Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price-earnings ratio
times
Expert Solution
Step 1
Hi student
Since there are multiple subparts, we will answer only first three subparts.
Book value per share is common stockholders equity attributable to single common share in the company. Earnings per share means amount of earnings attributable for each common share. Market to book ratio is ratio between market value per share to book value per share.
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