Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 3, Problem 3P
Summary Introduction
To calculate: The market/book ratio.
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Winston Watch's stock price is $75 per share. Winston has $10 billion
in total assets. Its balance sheet shows $1 billion in current liabilities,
$3 billion in long-term debt, and $6 billion in common equity. It has
800 million shares of common stock outstanding. What is Winston's
market/book ratio?
Winston Watch’s stock price is $75 per share. Winston has $10 billionin total assets. Its balance sheet shows $1 billion in current liabilities,$3 billion in long-term debt, and $6 billion in common equity. It has800 million shares of common stock outstanding. What is Winston’smarket/book ratio?
A company’s stock price is $50 per share. The company has $15 billion in total assets. Its balance sheet shows $2 billion in current liabilities, $3.5 billion in long-term debt, and $5 billion in common equity. It has 750 million shares of common stock outstanding.
What is the book value per share?
What is the market/book ratio?
Chapter 3 Solutions
Corporate Finance: A Focused Approach (mindtap Course List)
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Over the past year, M. D. Ryngaert Co. has...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4P
Ch. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Ace Industries has current assets equal to 3...Ch. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Complete the balance sheet and sales information...Ch. 3 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - Prob. 8MCCh. 3 - Prob. 9MCCh. 3 - Prob. 10MC
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- Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?arrow_forwardRebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)arrow_forwardWinston Washer's stock price is $75 per share. Winston has 10 billion dollars in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio?arrow_forward
- Edelman engines has $18 million in total assets. It’s balance sheet shows $2 million in current liabilities $10 million in long term debt and $6 million in common equity. It has 300000 common shares outstanding and it’s stock price is $28.20 per share. What is edelmans market / book ratioarrow_forwardDaniel Wellington's stock price is $85 per share. Wellington has 20 billion dollars in total assets. Its balance sheet shows $2 billion in current liabilities, $6 billion in long-term debt, and $12 billion in common equity. It has 800 million shares of common stock outstanding. What is Wellington's market/book ratio?arrow_forwardA stock has 94 million shares outstanding, with a current share price of $3.53 per share. If the firm's book value of equity is $120 million, what is its market-to-book ratio?arrow_forward
- Harper Industries has $900 million of common equity on its balance sheet; its stock price is $20 per share; and its market value added (MVA) is $60 million. How many common shares are currently outstanding?arrow_forwardChisel Corporation has 3 million shares outstanding at a price per share of $3.25. If the deb-to-equity ratio if 1.7 and a total book value of debt equals $12,400,000, what is the market-to-book ratio for Chisel Corporationarrow_forwardCIBC has 110 million shares outstanding, with a current share price of $94.50 per share. If the firm's market-to-book ratio is 7.85, what is the firm's book value of equity?arrow_forward
- You are given the following information: Stockholders’ equity !$3.75 billion, price/earnings ratio ! 3.5, common shares outstanding ! 50 million, and market/book ratio ! 1.9. Calculate the price of a share of the company’s common stockarrow_forwardMV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The preferred stock weight for the WACC calculation is __ % ? (Round to two decimal places.)arrow_forwardCSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 7. CSH has $6 million in debt, $3 million in cash, and 750,000 shares outstanding. What is your estimate of CSH's stock price? The estimate of CSH's stock price is (Round to the nearest cent.)arrow_forward
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