Question $1$:

First Software Inc. has total assets of $$870,000,$ current liabilities of $$191,000,$ and longterm liabilities of $$152,000.$ Twenty$-$five thousand shares of common stock have been issued.

A$.$ Compute the book value $($net worth$)$ per share.

$26\mathrm{.}35$

B$.$ If there is $$56,700$ in eamings available to common stockholders, and the firm's stock has a $\frac{P}{E}$ of $25$ 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?

D$.$ How might you explain the market to book ratio in problem $\text{'}C.\text{'}$