Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Phelps Labs has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding: 20,000 shares
Phelps Labs has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding: 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round the final answer to 2 decimal places.) Book value per share b. If there is $30,900 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 20 times EPS, what is the current price of the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Current price c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Ratio
Step by Step Solution
★★★★★
3.49 Rating (166 Votes )
There are 3 Steps involved in it
Step: 1
a Book value net worth per share can be calculated as follows Net worth Assets Liabilities Preferred ...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