As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $15 million, liabilities of $10 million, after-tax earnings of $2.85 million, and 2.10 million outstanding shares of common stock. Calculate the earnings per share of Bozo Oil’s common stock. Note: Round your answer to 2 decimal places. Assuming a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio? Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number. Calculate the book value of a share of Bozo Oil’s common stock. Note: Round your answer to 2 decimal places.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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I really need help on calculating the earning per share here

As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $15 million, liabilities of $10 million, after-tax earnings of $2.85 million, and 2.10 million outstanding shares of common stock.

  1. Calculate the earnings per share of Bozo Oil’s common stock.

    Note: Round your answer to 2 decimal places.

  2. Assuming a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?

    Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.

  3. Calculate the book value of a share of Bozo Oil’s common stock.

    Note: Round your answer to 2 decimal places.

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