Question
Wildcat Corporation recently disclosed the following financial information: Earnings/revenue $1,344,470 Assets $7,600,000 Liabilities $1,469,019 Shares outstanding 392 comma 884Market price $30.00 per share Calculate the
Wildcat Corporation recently disclosed the following financial information:
Earnings/revenue
$1,344,470
Assets
$7,600,000
Liabilities
$1,469,019
Shares outstanding 392 comma 884Market price
$30.00 per share
Calculate the price-to-book ratio, the price/earnings ratio, and the book value per share for each of the following separate scenarios:
a.
Based on current information
b. Earnings fall to
$896,313
c. Liabilities increase to
$2,798,970
d. The company does a three-for-one stock split with no change in market capitalization
e. The company repurchases 20 percent of the outstanding stock, incurring additional liability to finance the purchase.
a. Based on current information, the book value per share is
$nothing.
(Round to the nearest cent.)
Based on current information, the market-to-book (price/book) ratio is
nothing
. (Round to two decimal places.)
Based on current information, the price/earnings ratio is
nothing .
(Round to one decimal place.)
b. If earnings fall to
$896,313 ,
the book value per share is
$nothing.
(Round to the nearest cent.)
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