Question
Wildcat Corporation recently disclosed the following financial information: Earnings/revenue $1,619,611 Assets $7,700,000 Liabilities $1,365,436 Shares outstanding 454,903 Market price $30.00 per share Calculate the price-to-book
Wildcat Corporation recently disclosed the following financial information:
Earnings/revenue
$1,619,611
Assets
$7,700,000
Liabilities
$1,365,436
Shares outstanding
454,903
Market 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 $1,079,741
c. Liabilities increase to $3,009,043
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.
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