Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market
ID: 2767156 • 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 $21.
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.)
ome recent financial statements for Smolira Golf Corp. follow.
Explanation / Answer
PE ratio=
NO Of shares o/s =20000
Net Income=$42384 EPS= Net Income/No of shares outstanding= 42384/20000=2.12
Market price of the share =$ 21 PE ratio= Market price / EPS =21/2.12=9.91
Dividend per Share= Total Dividend paind/ no of shares o/s 29000/20000 =$1.45
Market to Book ratio * no market values are availble
PEG ratio = Price to Earnings Growth Ratio Formula = PE ratio /growth rate
PEratio=9.91 growth rate =8% 9.91/8=1.238 times
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