Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 2, Problem 7QAP
Summary Introduction

To prepare: Partial balance sheet.

Introduction: The balance sheet is one of the three financial statements that every organization prepares periodically. It helps the users of the financial statements in analyzing the financial position of the organization.

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A recent annual report for Wilmington, Inc. contained the following information: Retained earnings at the end of last year totaled $80,797 million.Net income for the current year was $11,943 million.Par value of the stock is $1 per share.Cash dividends declared in the current year were $6,910 million.The Common Stock account totaled $4,069 million at the end of the current year and $4,069 million at the end of last year.Assume that no other information concerning stockholders’ equity is relevant. Calculate the amount of retained earnings at the end of the current year?
You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $16.20 million and common stock dividends of $1.30 million. Roxie's year-end balance sheet shows common stockholders' equity of $55.9 million with 19 million shares of common stock outstanding. The common stock's market price per share was $8.10.
You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $7.80 million and common stock dividends of $2.70 million. Roxie's year-end balance sheet shows common stockholders' equity of $40.5 million with 15 million shares of common stock outstanding. The common stock's market price per share was $9.50. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.) Book value per share What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.) Earnings per share Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market-to-book ratio times Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price-earnings ratio times
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