Question
The Holtzman Corporation has assets of $387,000, current liabilities of $55,000, and long-term liabilities of $123,000. There is $37,500 in preferred stock outstanding; 20,000 shares
The Holtzman Corporation has assets of $387,000, current liabilities of $55,000, and long-term liabilities of $123,000. There is $37,500 in preferred stock outstanding; 20,000 shares of common stock have been issued.
a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
b. If there is $26,600 in earnings available to common stockholders, and Holtzmans stock has a P/E of 17 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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