Question
Peninsula Minerals Ltd's authorized share capital consists of an unlimited number of common shares, with 9.3 million outstanding. After some early successes, the company has
Peninsula Minerals Ltd's authorized share capital consists of an unlimited number of common shares, with 9.3 million outstanding. After some early successes, the company has failed to locate new mineral deposits and has also decreased its estimates of the amount of minerals in existing mines. As a result, earnings per share and the share price have been declining and are currently $0.17 and $0.68 per share respectively. Peninsula Minerals is considering a reverse stock split (one that decreases the number of shares outstanding instead of increasing them) of one-for-three.
Required
a. What is the current price/earnings ratio?
b. What is the current market value of the company?
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M Glichkeiten Und Grenzen Der F Rderung Verantwortlichen Handelns Von Wirtschaftspr Fern In Moralisch Relevanten Situationen Eine Theoretische Und And Accounting Studies
Authors: Catharina Schmiele
2012 Edition
383493335X, 978-3834933355
