Smolira Golf Corp. has 30,000 shares of common stock outstanding, and the market
ID: 2733559 • Letter: S
Question
Smolira Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $35.
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 6 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Some recent financial statements for Smolira Golf Corp. follow.
Explanation / Answer
Price earnings ratio = Market price per share / Earnings per share = $ 35 / $ (45,804/30,000 shares) = 22.92 times
Dividends per share = Total dividends paid / Number of shares outstanding = $ 27,000 / 30,000 = $ 0.90 per share
Market-to-book ratio = Market price per share / Book value per share = $ 35 / ( 266,196 / 30,000) = 3.94 times
Price earnings to growth ratio = Price earnings ratio / Growth rate = 22.92 / 6 = 3.82 times
Price-earnings ratio 22.92 timesRelated Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.