Problem 3-29 Market Value Ratios [LO2]

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP.

2014 and 2015 Balance SheetsAssetsLiabilities and Owners' Equity2014201520142015Current assetsCurrent liabilitiesCash$23,046$25,100Accounts payable$24,184$28,100Accounts receivable13,44816,200Notes payable20,00011,800Inventory26,82228,100Other12,57119,100Total$63,316$69,400Total$56,755$59,000Long-term debt$79,000$90,000Owners' equityCommon stock and paid-in surplus$48,000$48,000Accumulated retained earnings214,256237,000Fixed assetsNet plant and equipment$334,695$364,600Total$262,256$285,000Total assets$398,011$434,000Total liabilities and owners' equity$398,011$434,000

SMOLIRA GOLF CORP.

2015 Income StatementSales$349,760Cost of goods sold241,500Depreciation27,200Earnings before interest and taxes$81,060Interest paid15,300Taxable income$65,760Taxes (35%)23,016Net income$42,744Dividends$20,000Retained earnings22,744

Smolira Golf Corp. has 25,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $52.

What is the price-earnings ratio?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Price-earnings ratiotimes

What are the dividends per share?(Round your answer to 2 decimal places, e.g., 32.16.)

Dividendsper share

What is the market-to-book ratio at the end of 2015?(Round your answer to 2 decimal places, e.g., 32.16.)

Market-to-book ratiotimes

If the company's growth rate is 7 percent, what is the PEG ratio?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

PEG ratiotimes