The balance sheet for

Leo's Discount TireLeo's$$Discount$$Tire

Company shows a book value of$$stockholders$\text{'}$ equity$($book value per

sharetimes$\backslash$times total

shares$$outstanding$)$ of

$$$$23$ comma $945$ comma $00023,945,000.$

$$Furthermore$,$ the$$firm$\text{'}$s income statement for the year just ended has a net income of

$$$$520$ comma $000520,000,$

which is

$$$$0\mathrm{.}2920\mathrm{.}292$

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

Leo's Discount TireLeo's$$Discount$$Tire

Company is

$21\mathrm{.}6121\mathrm{.}61.$

a$.$ What price would you expect

Leo's Discount TireLeo's$$Discount$$Tire

Company shares to sell$$for$?$

b$.$ What is the book value per share for

Leo'sLeo's

$$shares$?$

c$.$ What does the market price and book value per share indicate about the$$firm$?$