As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the

Question:

As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $21 million, liabilities of $12 million, after-tax earnings of $2 million, and 1.25 million outstanding shares of common stock.

1. Calculate the earnings per share of Bozo Oil’s common stock.

2. Assuming a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s priceearnings ratio?

3. Calculate the book value of a share of Bozo Oil’s common stock.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Personal Finance

ISBN: 9781264101597

14th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

Question Posted: