According to the financial statements for Samson Electronics, Inc., the firm has total assets valued at $310 million. It also has total liabilities of $190 million. Company records indicate that the firm has issued 2 million shares of stock.
a. Based on the above information, calculate the book value for a share of Samson Electronics.
b. If a share of Samson Electronics, Inc. currently has a market value of $50 a share, what is the market-to-book ratio?
c. Based on the market-to-book ratio, is a share of Samson Electronics overpriced or underpriced? Explain your answer.