Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market

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 $37.

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.)

Explanation / Answer

Answer 1 Earning= Net income/share outstanding Earning= 50654/20000 Earning= 2.53 Price= 37 Price/earning= 37/2.5327 14.61 Answer 2 Dividend 29000 Dividend per share= dividend/share outstanding Dividend per share= 29000/20000 Dividend per share= 1.45 Answer 3 Total owner equity= 286000 Bookvalue per share= total equity/share outstanding Bookvalue per share= 286000/20000 Bookvalue per share= 14.30 Price/book value= Price/book value per share Price/book value= 37/14.30 Price/book value= 2.587 Answer 4 PEG ratio= P/E divided by growth PEG ratio= 14.61/8 PEG ratio= 1.83

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