Company X is presumably doing well. The corporation's balance sheet last September 31 can be summarized as follows:
Total Assets $6,000,000
Total Liabilities $2,000,000
Common stock: 1,500,000 shares
of $1.00 par value shares issued
Retained Earnings $3,000,000
Total Stockholders' equity $4,500,000
Total Liabilities & Stockholders'
Net Income last year was $.5 million. The common stock is currently selling for $11.00 per share.
Compute the following and show the formula:
Book value of the corporation
Book value per share
Value of the corporation if earnings are capitalized at 200
Capitalized value per share
Market value of the entire corporation.