FREE Trial

Amigo Software Inc. has total assets of $889,000, current liabilities of $192,000, and long-term liabilities of $154,000. There is $87,000

Question:

Amigo Software Inc. has total assets of $889,000, current liabilities of $192,000, and long-term liabilities of $154,000. There is $87,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.

a. Compute book value (net worth) per share.

b. If there is $56,300 in earnings available to common stockholders, and the firm’s stock has a P/E of 23 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? (Round to two places to the right of the decimal point.)


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...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 57% (7 reviews)

a b c Market value per share price to book value per share 43 …View the full answer


answer-question
Answered By
tutor-profile-image
Rohail Amjad
Experienced Finance Guru have a full grip on various sectors, i.e Media, Insurance, Automobile, Rice and other Financial Services. Have also served in Business Development Department as a Data Anlayst
4.70+ 32+ Reviews 83+ Question Solved
Related Book For  answer-question
Foundations of Financial Management

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: October 14, 2014 06:24:08
See More Questions

Students also viewed these Accounting questions

Q:
Question 1 The ABC Corporation has reported earnings available to common stock of $4,200,000 last year. The following information applies to the company. Dividend (preferred stock) # of outstanding...
A:
BREAK POINT AMOUNT OF CAPITAL AT WHICH SOURCE OF CAPITAL CHANGES NEW MCC TO FIND......
Q:
The Wilson Diversified Company has total assets of $130,000 at the end of 2007 and the following condensed income statement for 2007: Sales ............. $90,000 Operating expenses ...... (66,600)...
A:
WILSON DIVERSIFIED COMPANY Industry Segment Financial R......
Q:
The Sooner Equipment Company has total assets of $100 million. Of this total, $40 million was financed with common equity and $60 million with debt (both long- and short-term). Its average accounts...
A:
Reduction in accounts receivable 5 million 20 days x 0 25 mi......
Q:
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these...
A:
a 300 000 since all consumers purchase each product you......
Q:
Prove that a is a cluster point for some E X if and only if there is a sequence xn E \ {a} such that xn a as n .
A:
If a is a cluster point for E then let x n B 1 n a E a Such points ex......
Q:
Because a sailboat cannot sail directly into the wind, and traveling straight downwind is usually slow, the shortest sailing distance is rarely a straight line. Thus sailboats tack upwind-the...
A:
Tacking a sailboat as the wind shifts Desire......
Q:
Just Dew It Corporation reports the following balance sheet information for 2001 and 2002. Prepare the 2002 combined common-size, commonbase year balance sheet for Just Dew It. Assets Current assets...
A:
Click to View...
Q:
Do the concepts of complexity and divergence apply to an online sales company such as Dell Computer?
A:
Due to the size of Dell and the number of market segments they serve these co......
Q:
A project produces a cash flow of $502 in year 1, $207 in year 2, and $867 in year 3. If the cost of capital is 13.0%, what is the projects PV? If the project requires an investment of $1,175, what...
A:
To calculate the present value PV of the project we need to discount eac......
Q:
Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing...
A:
Journal entry for cooking department are as follows Dr Work......
Q:
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...
A:
a b c Market value per share price to book value per share 19......
Q:
For December 31, 2012, the balance sheet of Baxter Corporation was as follows: Sales for 2013 were $245,000, and the cost of goods sold was 60 percent of sales. Selling and administrative expense was...
A:
a Sales 245 000 Cost of good sold 60 147 000 Gross profit 98 000 Selling and administrative expense......
Q:
Explain why it takes more fuel for a spacecraft to travel from the Earth to the Moon than for the return trip. Estimate the difference.
A:
The escape speed from the Earth is 11 2 km s an......
Q:
Khushi's Kitchen offers both vegetarian and nonvegetarian lunch for office workers. The peak period for the business is between 12:15 p.m. and 14:15 p.m. Due to limited space, customers form a queue,...
A:
a The total time it takes a customer to complete the entire process of buying food from Khushi s Kit......
Q:
A shipyard services ships and makes it seaworthy as per the regulations. Management schedules overtime during periods of high demand to reduce backlog. The following ships need to be scheduled for...
A:
a First Come First Served FCFS and Earliest Due Date EDD are two different scheduling rules for prioritizing and scheduling tasks Let s develop separa......
Q:
Rain Shower is an international supplier of umbrellas. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract...
A:
To determine how many packages Rain Shower must ship annually to make leasing the warehouse more cos......
Q:
Broadcast advertising reports and audience studies are critical to the development and implementation of effective media strategy. As with print media, advertisers have a set of staple companies and...
A:
a Company Type s of broadcast media information Specific services products or publications Arbitron Radio audience measurement Radio ratings and market share data advertising performance measurement a......
Q:
Bob Carlton's golf camp estimates the following staff requirements for its services over the next 2 years. regular time and can work an additional 120 hours overtime. Regular-time wages and benefits...
A:
To find the staffing plan that minimizes costs for Bob Carlton s golf camp under different strategies we ll first analyze the level strategy then the chase strategy and finally propose a better plan G......
Q:
Can a credit entry be described as a generally positive or negative transaction? Explain.
A:
Credit entries are generally considered positive when they have a significant impa......
Q:
Is times interest earned meaningful for utilities? Why or why not?
A:
Yes the times interest earned ratio is meaningful for utilities since they have such a heavy use......
Q:
Ron's cheque book shows a balance of $400. A recent statement from the bank (received last week) shows that all cheques written as of the date of the statement have been paid, except numbers 325 and...
A:
a Rons Checkbook 35 58 22 45 17 177 b......
Q:
Why are U.S. money market rates generally lower than Canadian money market rates on instruments of similar risk?
A:
U S money market rates until the mid 90s had been lower than Canadian r......
Q:
Lett's commercial paper is presently selling at a discount. It sells for 97.29 of par and matures in 120 days. a. Calculate its yield as quoted in the market. b. Calculate its effective annual yield.
A:
a r 100 97 29 97......
Narratives Of Hunger In International Law Feeding The World In Times Of Climate Change 1st Edition - ISBN: 1108473377 - Free Book