Ames, Inc., has a current stock price of $43.00. For the past year, the company

Question

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 ratio              times

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

Price?sales ratio              times

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

Book value per share            $

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

Market-to-book ratio             times

Explanation / Answer

Earnings per share Net income/Shares outstanding $       1.39 6550000/4700000 Price?earnings ratio Market price per share/Earnings per share         30.85 times 43/1.39 Price?sales ratio Market price per share/Sales per share           5.10 times 43/(39600000/4700000) Book value per share Total equity value/Shares outstanding $       4.60 21640000/4700000 Market-to-book rati Market price per share/Book value per share           9.34 times 43/4.60

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