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 $ 24,126 $ 24,900 Accounts payable $ 23,984 $ 27,900
Accounts receivable 13,248 16,000 Notes payable 18,000 11,600
Inventory 26,542 27,900 Other 12,371 16,500
Total $ 63,916 $ 68,800 Total $ 54,355 $ 56,000
Long-term debt $ 77,000 $ 87,000
Owners equity
Common stock and paid-in surplus $ 50,000 $ 50,000
Accumulated retained earnings 215,256 238,000
Fixed assets
Net plant and equipment $ 332,695 $ 362,200 Total $ 265,256 $ 288,000
Total assets $ 396,611 $ 431,000 Total liabilities and owners equity $ 396,611 $ 431,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales $ 392,907
Cost of goods sold 256,500
Depreciation 48,400
Earnings before interest and taxes $ 88,007
Interest paid 15,100
Taxable income $ 72,907
Taxes (40%) 29,163
Net income $ 43,744
Dividends $ 21,000
Retained earnings 22,744

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 $24.

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 9 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

Step: 3

blur-text-image

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

International Finance

Authors: Keith Pilbeam

5th Edition

1350347094, 978-1350347090

More Books

Students also viewed these Finance questions