You are evaluating an investment in Harper's Home Retreat Corp. Last year, the firm's income statement reported an addition to retained earnings of $15.20 million and common stock dividends of $2.40 million. Harper's year-end balance sheet shows common stockholders' equity of $65.4 million with 16 million shares of common stock outstanding. The common stock's market price per share was $12.50. a) What is Harper's Home Retreat's book value per share? b) What is Harper's Home Retreat's earnings per share? c) Calculate the market-to-book ratio. d) Calculate the price-earnings ratio.

You are evaluating an investment in Harper's Home Retreat Corp. Last year, the firm's income statement reported an addition to retained earnings of $15.20 million and common stock dividends of $2.40 million. Harper's year-end balance sheet shows common stockholders' equity of $65.4 million with 16 million shares of common stock outstanding. The common stock's market price per share was $12.50. a) What is Harper's Home Retreat's book value per share? b) What is Harper's Home Retreat's earnings per share? c) Calculate the market-to-book ratio. d) Calculate the price-earnings ratio.

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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Similar questions

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 dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
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. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
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
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 $4.8 million and common stock dividends of $2.2 million. Roxie's year-end balance sheet shows common stockholders' equity of $35 million with 10 million shares of common stock outstanding. The common stock's market price per share was $9.00. What is Roxle'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. (Round your answer to 2 decimal places.) Market-to-book ratio times Calculate the price-earnings ratio. (Round your answer to 2 decimal places.) Price-earnings ratio times
You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $16.20 million and common stock dividends of $1.30 million. Roxie's year-end balance sheet shows common stockholders' equity of $55.9 million with 19 million shares of common stock outstanding. The common stock's market price per share was $8.10.
General Accounting
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,343,000. Furthermore, the firm's income statement for the year just ended has a net income of $530,000, which is $0.265 per share of common stock outstanding The price-earnings ratio for firms similar to Underwood Motors 20.91 a. What price would you expect Underwood Motors shares to sell for? b. What is the book vidue por share for Underwood's sharus? What price would you expect Underwood Motors shares to sell for? The market price per shares S (Round to the nearest cent)
Suppose you purchased 70 shares of ABC., Inc. for $46.27 per share. The company paid a dividend of $1.6 per share during the year and had an ending share price of $43.2. What is the dollar return on your investment?
The balance sheets for Larry underwood motors shows a book value of stockholders equity book value per share x total shares outstanding of $1349000. Furthermore the firms income statement for the year just ended has a net income of $598000, which is $0.285 per share of common stock outstanding. The price earnings ratio for firms similar to underwood motors is 18.71. A. What price would you expect underwood motors shares to sell for ? The market price per share is $ round to the nearest cent.
What was your percent return on these financial accounting question?