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Problem 3-29 Market Value Ratios [LO2] Some recent financial statements for Smolira Golf Corp. follow.   ...

Problem 3-29 Market Value Ratios [LO2]

Some recent financial statements for Smolira Golf Corp. follow.

  

SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners’ Equity
2014 2015 2014 2015
  Current assets   Current liabilities
      Cash $ 24,076 $ 24,400       Accounts payable $ 23,484 $ 27,400
      Accounts receivable 12,748 15,500       Notes payable 13,000 11,100
      Inventory 25,742 27,400       Other 11,871 17,500
        Total $ 62,566 $ 67,300         Total $ 48,355 $ 56,000
  Long-term debt $ 72,000 $ 84,000
  Owners’ equity
      Common stock and paid-in surplus $ 45,000 $ 45,000
      Accumulated retained earnings 224,906 245,000
  Fixed assets
  Net plant and equipment $ 327,695 $ 362,700   Total $ 269,906 $ 290,000
  Total assets $ 390,261 $ 430,000   Total liabilities and owners’ equity $ 390,261 $ 430,000


SMOLIRA GOLF CORP.
2015 Income Statement
  Sales $ 378,618
  Cost of goods sold 254,000
  Depreciation 56,150
  Earnings before interest and taxes $ 68,468
  Interest paid 14,600
  Taxable income $ 53,868
  Taxes (20%) 10,774
  Net income $ 43,094
      Dividends $ 23,000
      Retained earnings 20,094


Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $27.

  

What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

  Price-earnings ratio times

  

What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.)

  

  Dividends per share

  

What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.)

  

  Market-to-book ratio times

   

If the company’s growth rate is 10 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

  PEG ratio times

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