Question
Amigo Software Inc. has total assets of $818,000, current liabilities of $178,000, and long-term liabilities of $131,000. There is $128,000 in preferred stock outstanding. Thirty
Amigo Software Inc. has total assets of $818,000, current liabilities of $178,000, and long-term liabilities of $131,000. There is $128,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
b. If there is $56,200 in earnings available to common stockholders and the firms stock has a P/E of 29 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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