Question

Company A, Inc. has a total asset of $60,000 million. Its total liability is $48,000 million....

Company A, Inc. has a total asset of $60,000 million. Its total liability is $48,000 million. The price of the stock is $600 per share and the stock has 50 million shares outstanding. What is Company A's market-to-book ratio? (Round to 2 decimal places)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
A Computation of Book Value
a Total Assets $ 60,000 Million
b Less: Total Liabilities ($ 48,000 Million)
c Book Value (a-b) $ 12,000 Million
B Computation of Market Value
a Market Price per Share $                             600
b No. of Shares Outstanding 50 Million Shares
c Market Value (a*b) $ 30,000 Million
C Computation of Market-to-Book Ratio
Market to Book Ratio = Market Value/ Book Value
Market to Book Ratio = $ 30,000 Million / $ 12,000 Million
Market to Book Ratio = 2.50
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Eaton, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and...
Eaton, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $36 per share, but the book value per share is $8. Net income is currently $4 million. The new facility will cost $45 million, and it will increase net income by $780,000. Assume a constant price-earnings ratio. a-1 Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places,...
Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and...
Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $36 per share, but the book value per share is $8. Net income is currently $4 million. The new facility will cost $45 million, and it will increase net income by $800,000. Assume a constant price-earnings ratio. a-1. Calculate the net book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places...
Wayne, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and...
Wayne, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per share is $8. Net income is currently $3 million. The new facility will cost $60 million, and it will increase net income by $840,000. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places,...
Cheer, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and...
Cheer, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and no debt. The stock sells for $27 per share, but the book value per share is $36. Net income for Teardrop is currently $5.1 million. The new facility will cost $60 million and will increase net income by $920,000. The par value of the stock is $1 per share. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. Assume the...
Edelman Engines has $14 billion in total assets. Its balance sheet shows $2.1 billion in current...
Edelman Engines has $14 billion in total assets. Its balance sheet shows $2.1 billion in current liabilities, $9.8 billion in long-term debt, and $2.1 billion in common equity. It has 600 million shares of common stock outstanding, and its stock price is $22 per share. What is Edelman's market/book ratio? Round your answer to two decimal places.
Cheer, Inc., wishes to expand its facilities. The company currently has 8 million shares outstanding and...
Cheer, Inc., wishes to expand its facilities. The company currently has 8 million shares outstanding and no debt. The stock sells for $34 per share, but the book value per share is $42. Net income for Teardrop is currently $4.7 million. The new facility will cost $50 million and will increase net income by $800,000. The par value of the stock is $1 per share. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. Assume the...
Ames, Inc., has a current stock price of $44.50. For the past year, the company had...
Ames, Inc., has a current stock price of $44.50. For the past year, the company had net income of $6,400,000, total equity of $21,610,000, sales of $39,300,000, and 4.4 million shares of stock outstanding. What are earnings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Earnings per share [] $ What is the price?earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)...
Ames, Inc., has a current stock price of $43.00. For the past year, the company had...
Ames, Inc., has a current stock price of $43.00. For the past year, the company had net income of $6,550,000, total equity of $21,640,000, sales of $39,600,000, and 4.7 million shares of stock outstanding. What are earnings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Earnings per share            $ What is the price?earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price?earnings...
Tupp Amalgamated has $300 million in total assets, $50 million in current liabilities and $150 millicn...
Tupp Amalgamated has $300 million in total assets, $50 million in current liabilities and $150 millicn in longterm debt. It has 100 million shares of common stock outstanding with a per-share price of $30. What is Tupp's market-to-book ratio?
Rossdale, Inc., had additions to retained earnings for the year just ended of $632,000. The firm...
Rossdale, Inc., had additions to retained earnings for the year just ended of $632,000. The firm paid out $95,000 in cash dividends, and it has ending total equity of $7.27 million. If the company currently has 640,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Earning per share $ ___ Dividends per share $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT