Check BOLDED answers please SMOLIRA GOLF, INC. 2012 Income Statement Smolira Gol

Question

Check BOLDED answers please

SMOLIRA GOLF, INC.
2012 Income Statement

Smolira Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2012 was $35.

  

What is the price

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SMOLIRA GOLF, INC.
2012 Income Statement

  Sales $ 396,340   Cost of goods sold 256,000   Depreciation 49,000   Earnings before interest and taxes $ 91,340   Interest paid 15,000   Taxable income $ 76,340   Taxes (40%) 30,536   Net income $ 45,804       Dividends $ 27,000       Retained earnings 18,804

Explanation / Answer

Price Earnings Ratio Price per share $35 Earnings Per share= 45804/30000 1.53 Price Earnings Ratio= Price per share/Earnings per share 22.92 times Dividends per share Dividends $27,000 No: of shares 30000 Dividends per share= Dividends/ No: of shares $0.90 Market to book ratio Market Value= 30000*35 1050000 Book Value= 30000*35 (since no other value is given) 1050000 Market to book ratio= Market Value : Book Value 1 PEG Ratio Price Earnings Ratio 22.92times Growth 6percent PEG Ratio= PE ratio: Growth 3.82

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