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Example 3: The Rockford Corporation has assets of $400 000, current liabilities of $40 000, and long- term liabilities of 5'30 000. There is $30
Example 3: The Rockford Corporation has assets of $400 000, current liabilities of $40 000, and long- term liabilities of 5'30 000. There is $30 000 in preferred stock outstanding; 20 000 shares of conunon stock have been issued. a) Compute book value [net worth) per share 1]) If there is $25,000 in earnings available to common stockholders and the rm's stock has a PIE of 15 times earnings per share, what is the current price of the stock? c) What is the ratio of market value per share to book value per share
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