Using the information below for WAM Inc., the market value per share is: Earning

Question

Using the information below for WAM Inc., the market value per share is: Earnings after interest and taxes $2oo,o00 Earnings per share $2.oo Stockholders' equity $2,0oo,o00 Market/Book ratio o.20 a. $20.00. b. $. c. $4.00. d. $2.00. e. $1.00. 8.00 tO Using the information below for WAM Inc., the market value per share is: Earnings after interest and taxes $2oo,o00 Earnings per share $2.oo Stockholders' equity $2,0oo,o00 Market/Book ratio o.20 a. $20.00. b. $. c. $4.00. d. $2.00. e. $1.00. 8.00 tO

Explanation / Answer

1. Earnings per share = earnings after interest and taxes/No of shares

2 = 200,000/No of shares

No of shares = 100,000.

Market value / Book is given as 0.2. Book value is nothing but stockholders equity.

market value = 0. 2 *2,000,000 = 400,000.

Market value per share = market value/no of shares

=400,000/100,000

=4

Correct option is Answer C

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.