Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not
Pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Refer to the data for Pettijohn Inc. What is the firm's book value per share?
a. | $61.73 | |
b. | $64.98 | |
c. | $68.40 | |
d. | $75.60 | |
e. | $72.00 |
Balance Sheet (Millions of $ ). Assets 2016 Cash and securities \$ 1,554.0 Accounts receivable 9,660.0 Inventories 13,440.0 Total current assets $24,654.0 Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-termbondsTotalliabilitiesCommonstockRetainedearningsTotalcommonequityTotalliabilitiesandequity10,920.0$29,400.03,360.09,240.0$12,600.0$42,000.0 Income Statement (Millions of \$). 2016 Net sales $58,800.0 Operating costs except depr'n $55,274.0 Depreciation $1,029.0 Earnings bef int and taxes (EBIT) $2,497.0 Less interest 1,050.0 Earnings before taxes (EBT) \$ 1,447.0 Taxes $314.0 Net income $1,133.0 Other data: Shares outstanding (millions) 175.00 Common dividends $509.83 6.25% Int rate on notes payable \& L-T bonds Federal plus state income tax rate 21.7% Year-end stock price $77.69
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started