Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets
Assets Liabilities and Owners Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,116 $ 24,800 Accounts payable $ 23,884 $ 27,800
Accounts receivable 13,148 15,900 Notes payable 17,000 11,500
Inventory 26,392 27,800 Other 12,271 15,700
Total $ 63,656 $ 68,500 Total $ 53,155 $ 55,000
Long-term debt $ 76,000 $ 94,000
Owners equity
Common stock and paid-in surplus $ 40,000 $ 40,000
Accumulated retained earnings 226,196 245,000
Fixed assets
Net plant and equipment $ 331,695 $ 365,500 Total $ 266,196 $ 285,000
Total assets $ 395,351 $ 434,000 Total liabilities and owners equity $ 395,351 $ 434,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales $ 396,340
Cost of goods sold 256,000
Depreciation 49,000
Earnings before interest and taxes $ 91,340
Interest paid 15,000
Taxable income $ 76,340
Taxes (40%) 30,536
Net income $ 45,804
Dividends $ 27,000
Retained earnings 18,804

Smolira Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $35.

What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Price-earnings ratio times

What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.)

Dividends per share

What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.)

Market-to-book ratio times

If the companys growth rate is 6 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

PEG ratio times

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_2

Step: 3

blur-text-image_3

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

Real Life Money An Honest Guide To Taking Control Of Your Finances

Authors: Clare Seal

1st Edition

1472272293, 978-1472272294

More Books

Students also viewed these Finance questions

Question

3. Comment on how diversity and equality should be managed.

Answered: 1 week ago

Question

describe the legislation that addresses workplace equality

Answered: 1 week ago