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1. You plan to invest either in Moonton Technology Co. Ltd, the developer of Mobile Legends or PUBG Corporation, the developer of PlayerUnknown's Battlegrounds.
1. You plan to invest either in Moonton Technology Co. Ltd, the developer of Mobile Legends or PUBG Corporation, the developer of PlayerUnknown's Battlegrounds. The following are the information about Moonton and PUBG: Total assets Total debt Common stockholders' equity Net income Number of common stock outstanding Common stock dividends paid (per share) Market price of common stock (per share) Moonton $10 million $5 million $5 million $100 million 5 million $2.00 $20.00 PUBG $15 million $8 million $9 million $450 million 7.5 million $4.50 $30.00 Using the information above, find the followings: a) Companies' book value [1 m] b) Book value per share [1m] c) Earning Per Share (EPS) [1m] d) P/E ratio (times) [1m] e) Dividend payout ratio (%) [1m] f) Dividend yield on the common stock [1m] g) Based on your calculated P/E ratio and dividend payout ratio, would you invest in Moonton Technology or PUBG Corporation? Why? [4m]
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