Question
Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity 2017 2018 2017
Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 34,485 $ 37,928 Accounts payable $ 36,712 $ 42,632 Accounts receivable 17,851 27,856 Notes payable 19,108 16,275 Inventory 3,640 42,672 Other 19,954 24,714 Total $ 55,976 $ 108,456 Total $ 75,774 $ 83,621 Long-term debt $ 115,500 $ 174,101 Owners equity Common stock and paid-in surplus $ 55,100 $ 55,100 Accumulated retained earnings 273,922 315,417 Fixed assets Net plant and equipment $ 464,320 $ 519,783 Total $ 329,022 $ 370,517 Total assets $ 520,296 $ 628,239 Total liabilities and owners equity $ 520,296 $ 628,239 SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 506,954 Cost of goods sold 359,678 Depreciation 44,588 Earnings before interest and taxes $ 102,688 Interest paid 19,783 Taxable income $ 82,905 Taxes (21%) 17,410 Net income $ 65,495 Dividends $ 24,000 Retained earnings 41,495 Smolira Golf Corp. has 41,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $27. a. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.) c. What is the market-to-book ratio at the end of 2018? (Round your answer to 2 decimal places, e.g., 32.16.) d. If the companys growth rate is 6 percent, what is the PEG ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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