Question 4
a. For this we use the accounting equation: Assets = liabilities +equity
889,000 = 192,000+ 154,000 + 87,000 + Common Stock
Common Stock = 456,000
Book Value per share = 456,000/Number of shares 456,000/30,000 = $15.20
Book value per share =$15.20
b. Earnings per share = 56,300/30,000 = $1.8767/share
P/E = 23
P = 23* E = 23*1.8767
P = $43.1633
Current price of the stock = $43.16
c. Market Value to Book Value = 43.1633/15.20 = 2.84
Market Value to Book Value = 2.84
b. What was the increase in retained earnings for the year? Amigo Software Inc. has total...
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Saved Help Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $20 per share and has a beta of 0.8. There are 2 million common shares outstanding. The market risk premium is 8% , the risk-free rate is 4%, and the firm's tax rate is 40%. BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth...
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please answer part a and b of the question attached
below
Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of 0.9. There are 2 million common shares outstanding. The market risk premium is 9%, the risk-free rate is 5%, and the firm's tax rate is 40% BOOK-VALUE BALANCE SHEET...