Question

6) A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of
0 1
Add a comment Improve this question Transcribed image text
Answer #1

Earnings of the firm is 126400

Earnings per share is 126400/160000 = 0.79

Price earnings ratio is 21.3

Market value of share is

Earnings per share × price earning ratio

= 21.3 × 0.79 = 16.827

Book value is 7.92

Market to book ratio is 16.827/7.92 = 2.12:1

Add a comment
Know the answer?
Add Answer to:
6) A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price...

    Afirm has net income of $134,502. There are 136,088 shares of stock outstanding at a price per share of $12.98. The price to book ratio is 5.74 and the firm has $117,799 in total liabilities. What is the firm's price-earnings ratio? Answer should be formatted as a number with 2 decimal places (e.g. 99.99).

  • Eaton, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and...

    Eaton, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per share is $8. Net income is currently $4.8 million. The new facility will cost $45 million, and it will increase net income by $960,000. Assume a constant price-earnings ratio. a-1 Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places,...

  • ABC Corp 2019 Net income Total equity # of shares outstanding Stock price 2019/12/31 25,804 218,699...

    ABC Corp 2019 Net income Total equity # of shares outstanding Stock price 2019/12/31 25,804 218,699 4,821 125.50 Calculate the following values: Market capitalization Earnings per share Price-earnings ratio Book value per share Price-book ratio

  • help pleaseeee !! Walker Machine Tools has four million shares of common stock outstanding. The current...

    help pleaseeee !! Walker Machine Tools has four million shares of common stock outstanding. The current market price of Walker common stock is $58 per share rights-on. The company's net income this year is $19 million. A rights offering has been announced in which 580,000 new shares will be sold at $52.5 per share. The subscription price of $52.5 plus 7 rights is needed to buy one of the new shares. (Do not round Intermediate calculations. Round the final answers...

  • Wayne, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and...

    Wayne, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and no debt. The stock sells for $28 per share, but the book value per share is $8. Net income is currently $4.2 milion. The new facility will cost $42 milion, and it will increase net income by $810,000. Assume a constant price-earnings ratio a-1. Calculate the new book value per share. (Do not round intermediate calculations a-2. Calculate the new EPS. (Do not round...

  • Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding...

    Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding 300 The annual report of Sweet Cars, Inc., for the year ended December 31, 2018, included the following items (in millions): (Click the icon to view the items on the annual report.) 1. Calculate earnings per share (EPS) and the price-earnings ratio for Sweet Cars' stock. Round to the nearest cent. The price of a share of the company's stock is $35.91. 2. How...

  • Wayne, Inc., wishes to expand Its facilities. The company currently has 5 million shares outstanding and...

    Wayne, Inc., wishes to expand Its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $36 per share, but the book value per share Is $8. Net income is currently $4 million. The new facility will cost $45 million, and It wll Increase net Income by $780,000. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 declmal places,...

  • Financial Learning Systems has 1.8 million shares of common stock outstanding and 63 comma 939 shares...

    Financial Learning Systems has 1.8 million shares of common stock outstanding and 63 comma 939 shares of preferred stock.​ (The preferred pays annual cash dividends of ​$5.89 a​ share, and the common pays annual cash dividends of 32 cents a​ share.) Last​ year, the company generated net profit​ (after taxes) of $ 5 comma 765 comma 438. The​ company's balance sheet shows total assets of ​$73 ​million, total liabilities of $ 33 ​million, and $ 4 million in preferred stock....

  • The Amherst Company has a net profits of $11 million, sales of $194 million, and 4.8...

    The Amherst Company has a net profits of $11 million, sales of $194 million, and 4.8 million shares of common stock outstanding. The company has total assets of $115 million and total stockholders' equity of $54 mlion. It pays $1.08 per share in common dividends, and the stock trades at $20 per share. Given this information, determine the following: a. Amherst's EPS b. Amherst's book value per share and price-to-book-value ratio c. The firm's P/E ratio. d. The company's net...

  • Teardrop, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and...

    Teardrop, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per share is $42. Net income for Teardrop is currently $4.3 million. The new facility will cost $45 million, and it will increase net income by $500,000. The par value of the stock is $1 per share. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. Assume...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT