Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 3, Problem 3P
Summary Introduction
To calculate: The market/book ratio.
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Winston Watch's stock price is $75 per share. Winston has $10 billion
in total assets. Its balance sheet shows $1 billion in current liabilities,
$3 billion in long-term debt, and $6 billion in common equity. It has
800 million shares of common stock outstanding. What is Winston's
market/book ratio?
Winston Watch’s stock price is $75 per share. Winston has $10 billionin total assets. Its balance sheet shows $1 billion in current liabilities,$3 billion in long-term debt, and $6 billion in common equity. It has800 million shares of common stock outstanding. What is Winston’smarket/book ratio?
Lei Materials' balance sheet lists total assets of
$1.05
billion,
$127
million in current liabilities,
$435
million in long-term debt,
$488
million in common equity, and
54
million shares of common stock. If Lei's current stock price is
$51.38,
what is the firm's market-to-book ratio?
Chapter 3 Solutions
Corporate Finance: A Focused Approach (mindtap Course List)
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Over the past year, M. D. Ryngaert Co. has...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4P
Ch. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Ace Industries has current assets equal to 3...Ch. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Complete the balance sheet and sales information...Ch. 3 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - Prob. 8MCCh. 3 - Prob. 9MCCh. 3 - Prob. 10MC
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- Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?arrow_forwardRebert 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.)arrow_forward(Market value analysis) Lei Materials' balance sheet lists total assets of $1.36 billion, $108 million in current liabilities, $488 million in long-term debt, $764 million in common equity, and 50 million shares of common stock. If Lei's current stock price is $51.69, what is the firm's market-to-book ratio? The market-to-book ratio is (Round to two decimal places)arrow_forward
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- Windswept, Inc. has 8.5 million shares of stock outstanding. Its net income is $2.3 million. Its current price-earnings ratio is 7.3. What is the market price per share of stock?arrow_forwardRaleigh Racers has $17 billion in total assets. Its balance sheet shows $3 billion in current liabilities, $5 billion in long-term debt, and $9 billion in common equity. It has 750 million shares of common stock outstanding, and its stock price is $33 per share. What is Raleigh’s market-to-book ratio? a. 1.13 b. 2.75 c. 3.67 d. 1.94 e. 1.46arrow_forwardEdelman engines has $18 million in total assets. It’s balance sheet shows $2 million in current liabilities $10 million in long term debt and $6 million in common equity. It has 300000 common shares outstanding and it’s stock price is $28.20 per share. What is edelmans market / book ratioarrow_forward
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