Question

Problem 3-6 Calculating Market Value Ratios [LO2]

Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 million. The company currently has 140,000 shares of common stock outstanding.

  

What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

   

Earnings

$  per share

  

What are dividends per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Dividends

$  per share

  

What is the book value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Book value

$  per share

  

If the stock currently sells for $86 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Market-to-book ratio

times

  

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

  

If the company had sales of $4.69 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Price-sales ratio

times

Answer 1

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