Smolira Golf Corp. has 35,000 shares of common stock outstanding, and the market
ID: 2763885 • Letter: S
Question
Smolira Golf Corp. has 35,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $50.
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.)
Some recent financial statements for Smolira Golf Corp. follow.
Explanation / Answer
Earnings per share = Net income / Shares 54,764/35000 1.56 P/E ratio = Shares price / Earnings per share 50/1.56 31.96 Dividends per share = Dividends / Shares 35000/35000 1 Book value per share = Total equity / Shares 287000/35000 8.2 Market-to-book ratio = Share price / Book value per share 50/8.2 6.098 PEG ratio =PE rato/Growth 31.96/8 3.99
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