PLEASE DO NOT ROUND :) Smolira Golf Corp. has 40, 000 shares of common stock out

Question

PLEASE DO NOT ROUND :)

Smolira Golf Corp. has 40, 000 shares of common stock outstanding, and the marked price for a share of stock at the end of 2015 was dollar 42. What Is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g.. 32.16.) Price-earnings ratio times What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.18.) Dividends per share What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.) Market-to-book ratio times If the company's growth rate is 10 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) PEG ratio times

Explanation / Answer

Part A

First we need to compute EPS

EPS = net income / no. of shares outstanding

       = 37,694 / 40,000

        = 0.94235

Price earnings ratio = Price / EPS

                                       = 42 / 0.94235

                                        = 44.57

Part B

Dividend per share = dividend / no. of hares

                                      = 15694 / 40,000

                                      = 0.39

Part C

Book value per share = Total book value/ no. of shares

                                           = 284,000 / 40,000

                                                = 7.10

Market to book ratio = market price / book value per share

                                         = 42 /7.10

                                          = 5.92

Part D

PEG ratio = Price earnings ratio / growth rate

                    = 44.57 / 10

                   = 4.46

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