Amigo Software Inc. has total assets of $823,000, current liabilities of $248,000, and long-term liabilities of $147,000. There is $71,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.) Book value per share b. If there is $49,000 in earnings available to common stockholders and the firm's stock has a P/E of 23 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your 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 your final answer to 2 decimal places.) Market value to book value times

Amigo Software Inc. has total assets of $823,000, current liabilities of $248,000, and long-term liabilities of $147,000. There is $71,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.) Book value per share b. If there is $49,000 in earnings available to common stockholders and the firm's stock has a P/E of 23 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your 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 your final answer to 2 decimal places.) Market value to book value times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
The Tiffin corporation has assets of $424,000, current liabilities of $45,000, and long-term liabilities of $71,000. There is $30,000 in preferred stock outstanding: 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
The Holtzman Corporation has assets of $441,000, current liabilities of $105,000, and long-term liabilities of $147,000. There is $31,500 in preferred stock outstanding; 24,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
Ames, Inc., has a current stock price of $58. For the past year, the company had net income of 8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. What is book value per share? Select one: a.4,50$ b.6.50$ c.5.50$ d.7.50$
At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60
Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 520,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answers to two decimal places.)
Cases Unlimited reported operating income of $780,000, interest expense of $120,000,and net income of $575,000. The weighted-average number of shares of common stock outstanding during the year was 100,000 shares. What is the times-interest-earned ratio? (Roundyour final answer to two decimal places.)a. 4.79b. 5.79c. 6.50d. 7.50
BetterPie Industries has 7 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20,000 bonds. Assume the common shares are selling for $47 per share, the preferred shares are selling for $24.50 per share, and the bonds are selling for 99 percent of par. What would be the weights used in the calculation of BetterPie's WACC? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown in the following table. Liabilities & Equity Assets $100,000 Cash Fixed $1,000,000 $1,000,000 assets 900,000 Equity Total $1,000,000 Total Required: (a.) (b.) (c.) What price is Payout stock selling for today? What price will it sell for tomorrow? Ignore taxes. Suppose that instead of paying a dividend, Payout Corp. announces that it will repurchase stock with a market value of $10,000. What happens to the stock price when the repurchase proposal is announced? Suppose that the stock is repurchased immediately after the announcement. What would be the stock price after the repurchase? (d.)
OMG Inc. has 7 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 4,000 bonds. Suppose the common shares are selling for $17 per share, the preferred shares are selling for $26 per share, and the bonds are selling for 108 percent of par. What would be the weight used for equity in the computation of OMG's WACC? (Round your answer to 2 decimal places.) Weight used % ces MacBook Air
Kawther Inc. has net income of $200,000, average equity/ordinary shares outstanding of 40,000, and preferred dividends for the period of $20,000. What is Kawther’s earnings per share?
companys current balance sheet shows total common equity of $5,295,000. The company has 350,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answers to two decimal places.)