Monique's Boutique has assets of $820,000, current liabilities of $181,000, and long-term liabilities of $210,000. There...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Monique's Boutique has assets of $820,000, current liabilities of $181,000, and long-term liabilities of $210,000. There is $90,000 in preferred stock outstanding; 30,000 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 $52,800 in earnings available to common shareholders and Monique's stock has a P/E ratio of 26 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 $ Monique's Boutique has assets of $820,000, current liabilities of $181,000, and long-term liabilities of $210,000. There is $90,000 in preferred stock outstanding; 30,000 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 $52,800 in earnings available to common shareholders and Monique's stock has a P/E ratio of 26 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 $
Expert Answer:
Answer rating: 100% (QA)
a The book value per share is computed as follows Assets current llabilities long term llabilitles ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these general management questions
-
The treasurer of Kelly Bottling Company (a corporation) currently has $200,000 invested in preferred stock yielding 10 percent. He appreciates the tax advantages of preferred stock and is considering...
-
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the companys financial statements,...
-
Financial statements for Allendale Company follow: ALLENDALE COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets Cash $ 40,000 $ 36,000 Marketable securities 20,000 6,000...
-
Estimate the cash value of a life insurance policy as of December 31, 2016 based on the following information: Cash value as of January 2016 $90,000 Total premium during the year $ 8,000 Term life...
-
Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2001 to 2013. Compute a five-year weighted moving average using weights of .1, .1,...
-
To ensure complete combustion, 20% excess air is supplied to a furnace burning natural gas. The gas composition (by volume) is methane 95%, ethane 5%. Calculate the moles of air required per mole of...
-
In stepwise regression, we specify that \(F_{\mathrm{IN}} \geq F_{\mathrm{OUT}}\left( ight.\) or \(t_{\mathrm{IN}} \geq t_{\mathrm{OUT}}\) ). Justify this choice of cutoff values.
-
A building contractor obtained bids for some asphalt paving, based on a specification. Three paving subcontractors quoted the following prices and ten of payment: The building contractor uses a 12%...
-
5. Explain the function of a dielectric. 6 Identify the parts of a dry cell. 7. Name the five types of battery charges. 8. What is a device that exploits a magnetic field? 9. In order to store more...
-
WTI is planning to launch a new component. Production volume will be limited, with only 128 components to be produced in total. WTI expects the manufacture of the first component to take 25 direct...
-
A Saudi telecom company signed a contract on 9/1/2020 with a non-resident foreign telecommunications company to provide consulting services. The value of the contract amounted to 200 million riyals,...
-
For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility). 1....
-
A material is required for a disposable fork for a fast food chain that is conscious of its environmental image. List the objective and the constraints that you would see as important in this...
-
Imagine the following. You go to an e-commerce site and buy a pair of running shoes. You are anxious to receive the shoes because the ones you are wearing are worn out. The shoes arrive in three...
-
The standard CD ('Jewel' case) cracks easily and, if broken, can scratch the CD. Jewel cases are made of injection moulded polystyrene, chosen because it is transparent, cheap and easy to injection...
-
Ultraprecise bearings that allow a rocking motion make use of knife-edges or pivots. As the bearing rocks, it rolls, translating sideways by a distance that depends on the radius of contact. The...
-
Some critics of the psychology behind virtue ethics claim that a. it can only be said to apply to some people, not all. b. it makes insufficient room for personal ties and loyalties. c. it overstates...
-
(a) Water flows through the nozzle of a garden hose. Find an expression for m in terms of line pressure P 1 , ambient pressure P 2 , inside hose diameter D 1 , and nozzle outlet diameter D 2 . Assume...
-
In the previous problem, if the 1 million additional shares can be issued only at $23 per share and the company can earn 6.0 percent on the proceeds, should the new issue be undertaken based on...
-
Galaxydoughs Tea Ltd. has been considering a special investment for some time. This project will require an immediate capital expenditure of $1 million for required equipment. Galaxydoughs Tea will...
-
Manpower Electric Company has 6 percent convertible bonds outstanding. Each bond has a $1,000 par value. The conversion ratio is 20, the stock price $36, and the bonds mature in 16 years. a. What is...
-
Explain how the financial manager might use industry norms in the design of the companys financing mix.
-
You have developed the following income statement for Sing-Tel Corporation. It represents the most recent years operations, which ended yesterday. Your supervisor in the controllers office has just...
-
Financial data for three corporations are displayed here. MEASURE FIRM FIRM FIRM INDUSTRY A B C NORM Debt ratio 21% 24% 39% 21% Times interest 7.5 10.2 7.0 9.1 times earned times times times...
Study smarter with the SolutionInn App