Question content area top

What is the book value per share for

Leo'sLeo's

$$shares$?$

The book value per share is

$$$enter your response here.

Part $1$

$($Analyzing market$$ value$)$ The balance sheet for

Leo's Discount TireLeo's$$Discount$$Tire

Company shows a book value of$$ stockholders' equity$($book value per

sharetimes$$total

shares$$ outstanding$)$ of

$$$$23$ comma $362$ comma $00023,362,000.$

$$Furthermore$,$ the$$ firm's income statement for the year just ended has a net income of

$$$$506$ comma $000506,000,$

which is

$$$$0\mathrm{.}2650\mathrm{.}265$

per share of common stock outstanding. The$$ price$-$earnings ratio for firms similar to

Leo's Discount TireLeo's$$Discount$$Tire

Company is

$18\mathrm{.}4418\mathrm{.}44.$

a$.$ What price would you expect

Leo's Discount TireLeo's$$Discount$$Tire

Company shares to sell$$ for?

b$.$ What is the book value per share for

Leo'sLeo's

$$shares$?$

c$.$ What does the market price and book value per share indicate about the$$ firm?

Question content area bottom

Part $1$

a$.$ What price would you expect

Leo's Discount TireLeo's$$Discount$$Tire

Company shares to sell$$ for?

The market price per share is

$$$enter your response here.

$($Round to the nearest$$ cent.$)$