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 $ 34,385 $ 37,837 Accounts payable $ 36,722 $ 42,582 Accounts receivable 17,801 27,766 Notes payable 19,008 16,200 Inventory 36,310 42,632 Other 19,864 24,634 Total $ 88,496 $ 108,235 Total $ 75,594 $ 83,416 Long-term debt $ 115,000 $ 145,000 Owners equity Common stock and paid-in surplus $ 55,000 $ 55,000 Accumulated retained earnings 307,217 344,452 Net plant and equipment $ 464,315 $ 519,633 Total $ 362,217 $ 399,452 Total assets $ 552,811 $ 627,868 Total liabilities and owners equity $ 552,811 $ 627,868 SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 506,454 Cost of goods sold 359,328 Depreciation 44,463 Earnings before interest and taxes $ 102,663 Interest paid 19,683 Taxable income $ 82,980 Taxes (25%) 20,745 Net income $ 62,235 Dividends $ 25,000 Retained earnings 37,235 Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $58. 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the market-to-book ratio at the end of 2018? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If the companys growth rate is 9 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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