Calculate the price-to-book ratio for dow jones

Assignment Help Finance Basics

Reference no: EM131427283

The stock in Dow Jones & Co., Inc. (the publisher of the Wall Street Journal) has a book value (shareholders' equity per share) of approximately $6. Prior to a buyout offer, the stock had been trading (market value) for $36 per share. Rupert Murdoch and his News Corporation made an unsolicited offer of $60 per share during the summer of 2007. As of August 14, 2007, the market value was $58.60 per share.

REQUIRED:

a. What are the differences between book value and market value? How are these values determined?

b. Calculate the price-to-book ratio for Dow Jones.

c. Why would News Corporation offer to pay $60 per share (for a total of $5 billion) to buy a stock trading for $36 per share?

d. The Wall Street Journal, similar to other newspapers, has struggled against competition posed by the Internet and other electronic outlets. Discuss the effect that macroeconomic factors can have on the value of a stock.

Reference no: EM131427283

Questions Cloud

Analyze the supply chain for your identified company : B6029.51- Analyze the supply chain for your identified company by explaining the following key elements of the supply chain: Identify key inputs, including less tangible assets, such as human resources and information.

Explain how group homes can be effective as an alternative : Explain how group homes can be effective as an alternative to incarceration for juvenile offenders.Review any drawbacks, including concerns regarding costs, security, and impact on the offenders.Discuss the challenges associated with using group home..

What is a hybrid security : What is a hybrid security, and how should it be reflected on the balance sheet, income statement, statement of cash flows, and statement of shareholders' equity?

Discussion- enterprise resource planning : B6029.52- If continuous improvement is the key to remain competitive, then why do firms codify so many processes into enterprise resource planning (ERP) systems?

Calculate the price-to-book ratio for dow jones : The Wall Street Journal, similar to other newspapers, has struggled against competition posed by the Internet and other electronic outlets. Discuss the effect that macroeconomic factors can have on the value of a stock.

Different between the performances of boys and girls : Is the distribution of scores at this high school significantly different from the national results?- Was there a significant different between the performances of boys and girls at this school?

Completion of the digital forensics process : Investigation reports are essential for the the completion of the digital forensics process. What are some of these reports and why don't we just use video evidence to document our findings?

Closing the digital divide might provide : Do you believe that having Internet access, as the author suggests, is not a convenience or luxury, but a human right? List one benefit that closing the digital divide might provide (e.g. economic growth).

What is the difference between net and gross : What is meant by "net proceeds" on the statement of cash flow? What is the difference between "net" and "gross"?

User Account

All Pages