12. Calculating Ratios. According to the financial statements for Samson Electronics, Inc., the firm has total assets valued at $220 million. It also has total liabilities of $140 million. Company records indicate that the firm has issued 2 million shares of stock.

(Obj. 3)

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.