Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You are given the following information for Smashville, Incorporated.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
$ 184,000
$ 1,600
$ 387,000
$ 88,000
$ 7,400
$ 6,000
21%
$ 12,000
$ 21,000
Long-term debt:
$ 32,000
$ 40,000
Other assets:
Fixed assets:
Other liabilities:
Investments:
Operating assets:
$ 125,000
$ 5,000
$ 36,000
$ 64,000
During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $19,000. At the end of
the year, Smashville stock sold for $42 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Answer is not complete.
Price-book ratio
Price-earnings ratio
Price-cash flow ratio
15.19
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Transcribed Image Text:You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: $ 184,000 $ 1,600 $ 387,000 $ 88,000 $ 7,400 $ 6,000 21% $ 12,000 $ 21,000 Long-term debt: $ 32,000 $ 40,000 Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 125,000 $ 5,000 $ 36,000 $ 64,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $19,000. At the end of the year, Smashville stock sold for $42 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is not complete. Price-book ratio Price-earnings ratio Price-cash flow ratio 15.19
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