ZuoTi.Pro
Question

M/B AND SHARE PRICE You are given the following information: Stockholders equity as reported on the firms balance sheet $2.25 billion, price/earnings ratio-9, common shares outstanding = 44 million, and market/book ratio 1.4. Calculate the price of a share of the companys common stock. Round your answer to the nearest cent.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Total market value = $2.25 billion(1.4) = $3.15 million

Market value per share = $3.15 million / 44 million = $0.07

0 0
Add a comment
Know the answer?
Add Answer to:
M/B AND SHARE PRICE You are given the following information: Stockholders' equity as reported on the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • 10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity...

    10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $3.25 billion, price/earnings ratio = 22, common shares outstanding = 180 million, and market/book ratio = 1.6. The firm's market value of total debt is $6 billion, the firm has cash and equivalents totaling $250 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not...

  • You are given the following information: Stockholders' equity as reported on the firm's balance sheet =...

    You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 8.5, common shares outstanding = 170 million, and market/book ratio - 1.8. The firm's market value of total debt is $5 billion, the firm has cash and equivalents totaling $320 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...

  • You are given the following information: Stockholders' equity as reported on the firm’s balance sheet =...

    You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.5 billion, price/earnings ratio = 10, common shares outstanding = 210 million, and market/book ratio = 2.7. The firm's market value of total debt is $7 billion, the firm has cash and equivalents totaling $330 million, and the firm's EBITDA equals $3 billion. 1- What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer...

  • You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion

    You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 21.5, common shares outstanding = 24 million, and market/book ratio = 1.9. The firm's market value of total debt is $4 billion; the firm has cash and equivalents totaling $220 million; and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...

  • Assume you are given the following abbreviated financial​ statements: (attached) On the basis of this​ information,...

    Assume you are given the following abbreviated financial​ statements: (attached) On the basis of this​ information, calculate as many​ liquidity, activity,​ leverage, profitability, and common stock measures as you can.​(Note​: Assume the current market price of the common stock is $62.65 per share. * huge thumbs up for correct answers* Liquidity measures: The current ratio is ? (Round to two decimal​ places.) The​ firm's net working capital is (blank million) ? ​(Round to the nearest million​ dollars.) Activity measures: The​...

  • December 31, 2019 December 31, 2018 96,000 $ Net Income Preferred Dividends Total Stockholders' Equity Stockholders'...

    December 31, 2019 December 31, 2018 96,000 $ Net Income Preferred Dividends Total Stockholders' Equity Stockholders' Equity attributable to Preferred Stock Number of Common Shares Outstanding 21,000 330,000 30,000 70,000 3,000 314,000 30,000 8,000 16,000 Magnum, Inc. had reported the following balances: E: (Click the icon to view the 2018 and 2019 balances.) 11. Compute Magnum's earnings per share for 2019. 12. Compute Magnum's price/earnings ratio for 2019, assuming the market price is $38 per share. 13. Compute Magnum's rate...

  • Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume...

    Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume DEBT TO CAPITAL RATIO is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its d DuPONT ANALYSIS ROE of 15%. What is its total assets turnover? what is its equity multiplier? Baker Brothers has a DSO of 40 days, and its annual sales are...

  • uestion 6 (1 point) In its 2018 fiscal year, the data storage company, NetApp Inc.,, reported...

    uestion 6 (1 point) In its 2018 fiscal year, the data storage company, NetApp Inc.,, reported that it had 267.9 million shares of common stock outstanding, trading at a price of about $68 per share. On the firm's balance sheet, the value of common stock equity was reported as $2.067 billion. NetApp's market/book ratio was A) 8.8 B) 7.7 C) 68 D) greater than 100

  • Tolman, Inc. had reported the following balances: B (Click the icon to view the 2018 and...

    Tolman, Inc. had reported the following balances: B (Click the icon to view the 2018 and 2019 balances.) 11. Compute Tolman's earnings per share for 2019. 12. Compute Tolman's pricelearnings ratio for 2019, assuming the market price is $48 per share. 13. Compute Tolman's rate of return on common stockholders' equity for 2019. 11. Compute Tolman's earnings per share for 2019. Select the formula, then enter the amounts to calculate the company's earnings per share for 2019. (Abbreviations used: Ave....

  • Assume you are given the following abbreviated financial​ statements: Current assets ​$199   Fixed and other assets...

    Assume you are given the following abbreviated financial​ statements: Current assets ​$199   Fixed and other assets ​$368   Total assets $ 567   Current liabilities ​$128 ​ Long-term debt ​$106 ​ Stockholders' equity ​$333   Total liabilities and equity $ 567   Common shares outstanding 19 million shares   Total revenues ​$882   Total operating costs and expenses ​$771   Interest expense ​$16   Income taxes ​$33   Net profits $ 62   Dividends paid to common stockholders ​$19 On the basis of this​ information, calculate as many​ liquidity, activity,​...

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