Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking up a stock tip on Yahoo Finance that you received from your friend Lenny, you came across Cisco Incorporated. Reviewing their financials, you see

Looking up a stock tip on Yahoo Finance that you received from your friend Lenny, you came across Cisco Incorporated. Reviewing their financials, you see that they paid $2.2 million in common stock dividends with only 10 million shares outstanding. Out of the $35 million in stockholders equity $4.8 million was retained earnings. You feel that the price of the stock in the market today is reasonable at $9.00 per share. But Lenny always told you that you needed to figure out these four ratios before investing in any stock. So, you need to calculate:

A) P/E Ratio.

B) Book Value Per Share.

C) Earnings Per Share.

D) Market to Book Ratio.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry

Authors: Bijan Vasigh, Reza Taleghani, Darryl Jenkins

1st Edition

1604270713, 9781604270716

More Books

Students also viewed these Finance questions

Question

Explain the characteristics of an effective appraisal system.

Answered: 1 week ago

Question

Describe the various performance appraisal methods.

Answered: 1 week ago

Question

Define performance appraisal.

Answered: 1 week ago