You are considering an investment in Roxie\'s Bed & Breakfast Corp. During the l

Question

You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $12.00 million and common stock dividends of $2.00 million. Roxie's year-end balance sheet shows common stockholders' equity of $48.2 million with 12 million shares of common stock outstanding. The common stock's market price per share was $8.80. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.) Book value per share What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.) Earnings per share Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market-to-book ratio times Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price-eamings ratiko times

Explanation / Answer

book value per share=shareholder equity/number of shares=48.2/12=4.02

earnings per share=net income/number of shares=14/12=1.17

market to book ratio=8.80/(48.2/12)=2.19

price to earnings ratio=8.80/(14/12)=7.54

the above are the answers

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