Book value and market value 24. (LO2-2 & 2-3) The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and long-term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $22,000 in earnings available to common stockholders and Holtzman's stock has a P/E of 18 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share?

Book value and market value 24. (LO2-2 & 2-3) The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and long-term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $22,000 in earnings available to common stockholders and Holtzman's stock has a P/E of 18 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Ames, Inc., has a current stock price of $58. For the past year, the company had net income of 8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. What is book value per share? Select one: a.4,50$ b.6.50$ c.5.50$ d.7.50$
You have the following information about Trisha Company: total asset = %3D P350,000; common stock equity = P175,000; Return on Equity (ROE) = 12.5%. What is Trisha's earnings available for common stockholders? * P43,750 O P50,000 O P47,632 O P21,875
The net income is $800,000, the stock market price is $20, the shares outstanding is 200,000, please calculate PE ratio.a. 5b. 0.2c. 4 d. 0.25
1. The following accounts and their balances are found in the records ofAlamo Corporation: authorized share capital of par P100 is P10,000,000 of which P5,000,000 was issued and its accumulated earnings as of January 1 is P1,275,000. You were given the following additional information: (see attached image for the given. Please answer it. Thank youu so much!) Direction: a) Give the entrics needed for the above information.b) What is the dalance of the free or unrestricted retained earnings as of December 31.
The following information taken from Company XYZ: Balance sheet (Current) Common Stock (Par value @$2) $8,000,000 Paid in capital $30,000,000 RE $50,000,000 Total $88,000,000 Show the effect on Balance sheet (Equity section) after the following takes place: i. cash dividend = $4.20 per share, expected net income is $32 million ii. stock dividend: 20% stock dividend, current market price is $8 iii. stock split: five for two stock split Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The Holtzman Corporation has assets of $441,000, current liabilities of $105,000, and long-term liabilities of $147,000. There is $31,500 in preferred stock outstanding; 24,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
H5. You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $4.8 million and common stock dividends of $2.2 million. Roxie's year-end balance sheet shows common stockholders' equity of $35 million with 10 million shares of common stock outstanding. The common stock's market price per share was $9.00. What are Roxie's Bed & Breakfast's earnings per share? Calculate the price-earnings ratio. Show proper step by step calculation
Quincy Martin Manufacturing has assets of $5 million and liabilities of $3 million. The company has also issued 400,000 shares of common stock. What is the company's book value per share? Select one: O a. $10.25 O b. $7.50 O c. $5 O d. $2.50 O e. $1.00
Justice Corporation reported the following financial statements: LOADING... (Click the icon to view the financial statements.) The company has 2,900 shares of common stock outstanding and the market price is $25 per share. What is Justice's price/earnings ratio? (Round any intermeidary calculations and your final answer to two decimal places, X.XX.) A. 0.09 B. 8.80 C. 8.80 times D. $0.09 Click to select your answer. Financial Statements Justice Corporation Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Assets Current Assets: Cash and Cash Equivalents $2,150 $1,724 Accounts Receivable 1,966 1,772 Merchandise Inventory 1,348 1,104 Prepaid Expenses 1,638 2,055 Total Current Assets 7,102 6,655 Other Assets 17,335 16,268 Total Assets $24,437 $22,923 Liabilities Current Liabilities $7,383…
50) Tucker Electronic System's current balance sheet shows total common equity of $3,125,000. The company has 125,000 shares of stock outstanding, and they sell at a price of $52.50 per share. By how much do the firm's market and book values per share differ? a. $28.88 b. $31.83 c. $33.43 d. $27.50 e. $30.32 52) Question 52 Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow? a. $693.50 b. $804.83 c. $766.50…
1. ST Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P175,000. The cash balance is P350,000. How much is the maximum amount of cash dividend that the corporation can declare and pay? a. P175,000 b. P1,000,000 c. P350,000 d. P525,0002. CT, Inc. has 10,000 shares of 8% P50 par preference shares and 100,000 shares of P4par ordinary shares outstanding. Two years’ preference dividends are in arrears. It declared cash dividends large enough to pay preference dividend in arrears, the preference dividends for the current period, and a P1.50 dividend to ordinary. What is the total amount oft he dividend? a. P270,000 b. P260,000 c. P255,000 d. P225,000 3. DY Corporation declared the regular quarterly dividend of P2 per share. It had issued12,000 shares and subsequently reacquired 2,000 shares as treasury stock. What would be the amount of the dividend per quarter?Required to answer. Single choice. a. P4,000 b. P20,000 c.…
The following information pertains to Marsh Company. Assume that all balance sheet 20. amounts represent average balance figures. Total asset $400,000 Stockholders' equity-common 200,000 Total stockholders' equity 280,000 Sales revenue 120,000 Net income 30,000 Number of shares of common stock 8,000 Common dividends 6,000 Preferred dividends 4,000 What is Marsh's payout ratio? 33.3% a. b. 20.0% 13.3%. C. d. 5.0%

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS