Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market
ID: 2765830 • Letter: S
Question
Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $57.
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 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.)
eBook & Resources
Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $57.
Explanation / Answer
Answer
Answer 1
Figures in $
Particulars
Amount
Market price per share
a
57
Net income
b
40374
Shares of common stock outstanding
c
20000
Earnings per share (b/c)
d
2.0187
P/E ratio (a/d)
28.24
Answer 2
Figures in $
Dividends
a
27000
Shares of common stock outstanding
b
20000
Dividends per share (a/b)
1.35
Answer 3
Figures in $
Particulars
Amount
Market price per share
a
57
Owner's equity
b
265626
Shares of common stock outstanding
c
20000
Book value per share (b/c)
d
13.2813
Market to book ratio (a/d)
4.29
Answer 4
Figures in $
Particulars
Amount
Market price per share
a
57
Net income
b
40374
Shares of common stock outstanding
c
20000
Earnings per share (b/c)
d
2.0187
P/E ratio (a/d)
e
28.24
Growth rate (%)
f
10
PEG ratio (e/f)
2.82
Figures in $
Particulars
Amount
Market price per share
a
57
Net income
b
40374
Shares of common stock outstanding
c
20000
Earnings per share (b/c)
d
2.0187
P/E ratio (a/d)
28.24
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