Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding. Four

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Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding. Four hundred thousand common stock shares have been issued.

a. Compute book value per share.

b. If the firm has earnings per share of $1.10 and a P/E ratio of 15, what is the stock price per share?

c. What is the ratio of market value per share to book value per share?

Related Book For answer-question

Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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Posted Date: Feb 10, 2022 01:04 AM

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Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding. Four

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Introduction to Financial Accounting

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