For four years, Marty Campbell invested $7,000 each year in Newsome Golf Apparel
ID: 2478535 • Letter: F
Question
For four years, Marty Campbell invested $7,000 each year in Newsome Golf Apparel. The stock was selking for $7 in 2008, $14 in 2009, $20 in 2010, and $25 in 2011 a. What is Marty's total investment in Newsome Golf? Total investment b. After four years, how many shares does Marty own? (Do not round intermediate calculations.) Number of shares c. What is the average cost per share of Marty's investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average cost per shareExplanation / Answer
Answer to the Question
(a) Total Investment of Marty's in Golf Apparel is $28,000.
(b) Number of shares Marty's hold in Golf Apparel after four year is 2,130.
( (7000/7)+(7000/14)+(7000/20)+(7000/25))=1000+500+350+280=2,130
(c) Average cost per share=Total Investment/Total number of shares
=$28,000/2,130
=$13.1455.
PART -2
Profit available to Equity share holder=$26,00,000
No of Common stock 20,00,000
Current market price =$39.
(a) EPS=Profit available to Equity share holders/Number of shares
=$26,00,000/20,00,000
=$1.3
(b) PE ratio=Current Market price/EPS
=$39/1.3
=30.
PE ratio 30 and EPS $1.3
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