You are considering an investment in Roxies Bed Breakfast Corp During the last year the firms income statement listed an addition to retained earnings of $4 8 million and common stock dividends of $2 2 million Roxies year end balance sheet shows common stockholders equity of $35 million with 10 mil...

Book value per share 35m10m 350 pe ...

You are considering an investment in Roxies Bed & Breakfast Corp. During the last year the firms

Question:

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 dividends of $2.2 million. Roxie’s year-end shows common stockholders’ equity of $35 million with 10 million shares of outstanding. The ’s market price per share was $9.00. What is Roxie’s Bed & Breakfasts book value per share and earnings per share? Calculate the market-to-book ratio and PE ratio. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...