Net income Dividends Additions to retained earnings $ 21,000 100,949 $121,949 Earl Grey Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $39.
Net income Dividends Additions to retained earnings $ 21,000 100,949 $121,949 Earl Grey Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $39.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Some recent financial statements for Earl Grey Golf Corp. follow.
Current assets
Cash
Accounts receivable
Inventory
Total
Assets
Fixed assets
Net plant and equipment
Total assets
Sales
Cost of goods sold
Depreciation
2017
$ 23,056
12,416
24,674
$ 60,146
$245,068
$305,214
Earnings before interest and tax
Interest paid
Taxable income
Taxes (40%)
Net income
EARL GREY GOLF CORP.
2017 and 2018 Statement of Financial Position
Dividends
Additions to retained earnings
2018
EARL GREY GOLF CORP.
2018 Statement of Comprehensive Income
25, 200
16,300
28, 200
69,700
364,300
434,000
$ 21,000
100,949
Liabilities and Owners' Equity
2017
Current liabilities
Accounts payable
Notes payable
Other
Total
Long-term debt
Owners' equity
Common stock and paid-in surplus
Retained earnings
Total
Total liabilities and owners' equity
$ 519,878
258,000
45,600
$216,278
13,030
$203,248
81, 299
$121,949
$ 20,420
13,000
10,743
$44,163
$ 80,000
$ 60,000
121,051
$181,051
$305,214
2018
$ 28,200
10,100
19,900
$ 58,200
$ 93,800
$ 60,000
222,000
$282,000
$434,000
Earl Grey Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was
$39.
What is the price-earnings ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10aefa73-7e5b-44a6-ad9e-28e02a45b702%2Ffc658bfc-0e74-4275-b35b-b7f1afc1e96b%2F3go61qm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Some recent financial statements for Earl Grey Golf Corp. follow.
Current assets
Cash
Accounts receivable
Inventory
Total
Assets
Fixed assets
Net plant and equipment
Total assets
Sales
Cost of goods sold
Depreciation
2017
$ 23,056
12,416
24,674
$ 60,146
$245,068
$305,214
Earnings before interest and tax
Interest paid
Taxable income
Taxes (40%)
Net income
EARL GREY GOLF CORP.
2017 and 2018 Statement of Financial Position
Dividends
Additions to retained earnings
2018
EARL GREY GOLF CORP.
2018 Statement of Comprehensive Income
25, 200
16,300
28, 200
69,700
364,300
434,000
$ 21,000
100,949
Liabilities and Owners' Equity
2017
Current liabilities
Accounts payable
Notes payable
Other
Total
Long-term debt
Owners' equity
Common stock and paid-in surplus
Retained earnings
Total
Total liabilities and owners' equity
$ 519,878
258,000
45,600
$216,278
13,030
$203,248
81, 299
$121,949
$ 20,420
13,000
10,743
$44,163
$ 80,000
$ 60,000
121,051
$181,051
$305,214
2018
$ 28,200
10,100
19,900
$ 58,200
$ 93,800
$ 60,000
222,000
$282,000
$434,000
Earl Grey Golf Corp. has 30,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was
$39.
What is the price-earnings ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal
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