Smolira Golf Corp. has 40,000 shares of common stock outstanding, and the market
ID: 2616657 • Letter: S
Question
Smolira Golf Corp. has 40,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $30.
What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.)
If the company’s growth rate is 8 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets Current liabilities Cash $ 24,246 $ 26,100 Accounts payable $ 25,184 $ 29,100 Accounts receivable 14,448 17,200 Notes payable 20,000 12,800 Inventory 27,992 29,100 Other 13,571 18,100 Total $ 66,686 $ 72,400 Total $ 58,755 $ 60,000 Long-term debt $ 89,000 $ 101,000 Owners’ equity Common stock and paid-in surplus $ 50,000 $ 50,000 Accumulated retained earnings 213,626 226,000 Fixed assets Net plant and equipment $ 344,695 $ 364,600 Total $ 263,626 $ 276,000 Total assets $ 411,381 $ 437,000 Total liabilities and owners’ equity $ 411,381 $ 437,000
Explanation / Answer
Price-earnings ratio 28.32 times 30/(42374/40000) Dividends 0.75 per share 30000/40000 Market-to-book ratio 4.35 times 30/(276000/40000) PEG ratio 353.99 times (30/(42374/40000))/8%
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