Phelps Labs has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There...
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Phelps Labs has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding: 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round the final answer to 2 decimal places.) Book value per share b. If there is $30,900 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 20 times EPS, what is the current price of the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Current price c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Ratio Phelps Labs has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding: 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round the final answer to 2 decimal places.) Book value per share b. If there is $30,900 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 20 times EPS, what is the current price of the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Current price c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Ratio
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Answer rating: 100% (QA)
a Book value net worth per share can be calculated as follows Net worth Assets Liabilities Preferred ... View the full answer
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Posted Date:
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