Problem 3-29 Market Value Ratios [LO2]

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets
Assets									Liabilities and Owners Equity
	2014				2015					2014				2015
Current assets									Current liabilities
Cash	$	23,086			$	25,500			Accounts payable	$	24,584			$	28,500
Accounts receivable		13,848				16,600			Notes payable		15,000				12,200
Inventory		27,362				28,500			Other		12,971				18,300
Total	$	64,296			$	70,600			Total	$	52,555			$	59,000
									Long-term debt	$	55,000			$	61,000
									Owners equity
									Common stock and paid-in surplus	$	52,000			$	52,000
									Accumulated retained earnings		243,436				263,000
Fixed assets
Net plant and equipment	$	338,695			$	364,400			Total	$	295,436			$	315,000
Total assets	$	402,991			$	435,000			Total liabilities and owners equity	$	402,991			$	435,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales					$	359,607
Cost of goods sold						235,900
Depreciation						35,400
Earnings before interest and taxes					$	88,307
Interest paid						15,700
Taxable income					$	72,607
Taxes (40%)						29,043
Net income					$	43,564
Dividends	$	24,000
Retained earnings		19,564

Smolira Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $47.

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 ratio

times

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

Dividends

per 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 ratio

times

If the companys growth rate is 8 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 ratio

times