Ron’s Rodents Co. has total assets of $5 million, total short- and long-term debt of $2.8 million, and $400,000 worth of 8% preferred stock outstanding. What is the firm’s total book value? What would its book value per share be if the firm had 50,000 shares of common stock outstanding?
Answer to relevant QuestionsLockhart’s Bookstores is trading at $35 per share. There are 280 million shares outstanding. What is the market capitalization of this company? a. What do you think of the idea of Sara keeping “substantial sums” of money in savings accounts? Would common stocks make better investments for her than savings accounts? Explain. b. What is your opinion of the 4 ...What is ratio analysis? Describe the contribution of ratio analysis to the study of a company’s financial condition and operating results. What effect, if any, does inflation have on common stocks? Stroud Sporting Gear Inc. has a net profit margin of 6%, a total asset turnover of 2.5, total assets of $250 million, and total equity of $125 million. What is the company’s return on equity?
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