Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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What is the current price of the stock? General accounting
Transcribed Image Text:The Holtzman Corporation has assets of $414,000, current
liabilities of $41,000, and long-term liabilities of $73,000. There is
$36,000 in preferred stock outstanding; 20,000 shares of common
stock have been issued.
a. Compute book value (net worth) per share.
b. If there is $29,600 in earnings available to common
stockholders, and Holtzman's stock has a P/E of 16 times earnings
per share, what is the current price of the stock?
c. What is the ratio of market value per share to book value per
share?
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