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( Analyzing market value ) The balance sheet for Leo's Discount Tire Company shows a book value of stockholders' equity ( book value per share
Analyzing market value The balance sheet for Leo's Discount Tire Company shows a book value of stockholders' equity book value per share total shares outstanding of $ Furthermore, the firm's income statement for the year just ended has a net income of $ which is $ per share of common stock outstanding. The priceearnings ratio for firms similar to Leo's Discount Tire Company is
a What price would you expect Leo's Discount Tire Company shares to sell for?
b What is the book value per share for Leo's shares?
c What does the market price and book value per share indicate about the firm?
a What price would you expect Leo's Discount Tire Company shares to sell for?
The market price per share is $ Round to the nearest cent.
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