Discussion Question

1. As a shareholder of an oil company, Jane received the company's annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. a. Calculate the book value of a share of this oil company's common stock. b. Calculate the earnings per share of this oil company's common stock. c. Assuming that a share of this oil company's common stock has a market value of $40, what is the firm's price-earnings ratio? 2. For four years, Marie St. Louis invested $3,000 each year in Canada Bank stock. The stock was selling for $34 in 2014 , for $48 in 2015,$37 in 2016 and for $52 in 2017. a. What is Marie's total investment in Canada Bank? b. After four years, how many shares does Marie own? c. What is the average cost per share of Marie's investment?|