The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per

share times

total

shares outstanding) of

$ 1 comma 347 comma 000

.

Furthermore, the firm's income statement for the year just ended has a net income of

$ 540 comma 000

,

which is

$ 0.297

per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is

18.17

.

a.What price would you expect Underwood Motors shares to sell for?

b.What is the book value per share for Underwood's shares?

Question content area bottom

Part 1

a.What price would you expect Underwood Motors shares to sell for?

The market price per share is

$enter your response here

.

(Round to the nearest cent.)