Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Amigo Software Inc. has total assets of $831,000, current liabilities of $154,000, and long-term liabilities of $160,000. There is $110,000 in preferred stock outstanding. Thirty

Amigo Software Inc. has total assets of $831,000, current liabilities of $154,000, and long-term liabilities of $160,000. There is $110,000 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.) Book value per share b. If there is $57,500 in earnings available to common stockholders and the firm's stock has a P/E of 21 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.) Current price 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.) Market value to book value times
image text in transcribed
Amigo software inc has total assets of 5931000 , current fiabilies of $154,000, and long-term liabilities of $160,000 There is $110,000 in preterted stock outstanding. Thity thousand shares of common stock have been issued a. Compute book value (net worth) per share. (Round your answer to 2 decimal pleces.) b. If there is 557,500 in camings avalable to common stockholders and the firm's stock has a PjE of 21 times earnings per share, what B the current pnct of the stock? (Do not round intermediate colculotions. Round your final answer to 2 decimal places.) C. What is the ratio of market value pershare to book volue per share? (Do not round intermediate calculotions. Round your final nnswer to 2 decimal ploces )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

25.0 m C B A 52.0 m 65.0 m

Answered: 1 week ago