Phelps Labs has assets of $1,800,000, current liabilities of $595,000, and long-term liabilities of $630,000. There is

Question:

Phelps Labs has assets of $1,800,000, current liabilities of $595,000, and long-term liabilities of $630,000. There is $165,000 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 $45,000 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 13 times EPS, what is the current price of the stock?
c. What is the ratio of market value per share to book value per share?

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...

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