Question

SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2014				2015					2014				2015
Current assets									Current liabilities
Cash	$	24,086			$	24,500			Accounts payable	$	23,584			$	27,500
Accounts receivable		12,848				15,600			Notes payable		15,000				11,200
Inventory		26,042				27,500			Other		11,971				18,300
Total	$	62,976			$	67,600			Total	$	50,555			$	57,000
									Long-term debt	$	60,000			$	73,000
									Owners’ equity
									Common stock and paid-in surplus	$	44,000			$	44,000
									Accumulated retained earnings		237,116				256,000
Fixed assets
Net plant and equipment	$	328,695			$	362,400			Total	$	281,116			$	300,000
Total assets	$	391,671			$	430,000			Total liabilities and owners’ equity	$	391,671			$	430,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales					$	373,473
Cost of goods sold						254,500
Depreciation						32,800
Earnings before interest and taxes					$	86,173
Interest paid						14,700
Taxable income					$	71,473
Taxes (40%)						28,589
Net income					$	42,884
Dividends	$	24,000
Retained earnings		18,884

Smolira Golf Corp. has 40,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $30.

  

What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Price-earnings ratio

times

  

What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.)

  

Dividends

per share

  

What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.)

  

Market-to-book ratio

times

   

If the company’s growth rate is 7 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

PEG ratio

times

Answer 1