Calculate the price-earnings ratio and market-to-book ratio

Assignment Help Financial Accounting

Reference no: EM131266413

You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $13.20 million and common stock dividends of $1.80 million. Roxie's year-end balance sheet shows common stockholders' equity of $50.4 million with 14 million shares of common stock outstanding. The common stock's market price per share was $8.60.

1. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.) Book value per share $

2. What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.) Earnings per share $

3. Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market-to-book ratio times

4. Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price-earnings ratio times.

Reference no: EM131266413

Questions Cloud

Calculate beginning-of-year balance for long-term debt : Dogs 4 U Corporation has net cash flow from financing activities for the last year of $31 million. The company paid $172 million in dividends last year. During the year, the change in notes payable on the balance sheet was $36 million and change in c..

Calculate the cost of goods sold and the interest expense : You have been given the following information for Moore’s HoneyBee Corp. Calculate the cost of goods sold and the interest expense for Moore’s HoneyBee Corp.

Calculate the income available to pay the asset funders : You are considering a stock investment in one of two firms (AllDebt, Inc., and AllEquity, Inc.), both of which operate in the same industry and have identical operating income of $7.00 million. Calculate the income available to pay the asset funders ..

Book and market values of the firm stockholders equity : Ava’s SpinBall Corp. lists fixed assets of $22 million on its balance sheet. The firm’s fixed assets have recently been appraised at $36 million. Current liabilities’ book and market values stand at $5 million and the firm’s book and market values of..

Calculate the price-earnings ratio and market-to-book ratio : You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $13.20 million and common stock dividends of $1.80 million. What is Roxie's Bed & Breakfas..

Calculate the return on assets and dividend payout : Maggie's Skunk Removal Corp.'s 2012 income statement listed net sales of $13.9 million, EBIT of $7.0 million, net income available to common stockholders of $4.6 million, and common stock dividends of $2.6 million. Calculate the return on assets. Cal..

Calculate goodman bees cash ratio and current ratio : You are evaluating the balance sheet for Goodman’s Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $260,000; accounts receivable = $1,400,000; inventory = $2,300,000; accrued wages and taxes ..

Account for the arrangement as capital lease : On January 1, year 1, Frost Co. entered into a two-year lease agreement with Ananz Co. to lease 10 new computers. The lease term begins on January 1, year 1 and ends on December 31, year 2. The present value of the minimum lease payments is $13,000. ..

What is the payback period for the new machine : A company is considering the purchase of a new machine for $54,000. Management predicts that the machine can produce sales of $16,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..

User Account

All Pages