Question: The Holtzman Corporation has assets of 400 000 current liabilities of

The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and long-term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued.
a. Compute book value (net worth) per share.
b. If there is $22,000 in earnings available to common stockholders, and Holtzman’s stock has a P/E of 18 times earnings per share, what is the current price of the stock?
c. What is the ratio of market value per share to book value per share?

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  • CreatedOctober 14, 2014
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