2. Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding.

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2. Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding. Four hundred thousand common stock shares have been issued.

a. Compute book value per share.

b. If the firm has earnings per share of $1.10 and a P/E ratio of 15, what is the stock price per share?

c. What is the ratio of market value per share to book value per share?

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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Question Posted: Oct 21, 2024 10:00 AM

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2. Northern Energy Company has assets of $7,000,000, liabilities of $4,000,000, and $500,000 in preferred stock outstanding.

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Foundations Of Financial Management

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