Question

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016
	2015				2016					2015				2016
Assets									Liabilities and Owners’ Equity
Current assets									Current liabilities
Cash	$	3,061			$	3,057			Accounts payable	$	2,178			$	2,650
Accounts receivable		4,742				5,731			Notes payable		1,775				2,166
Inventory		12,578				13,732			Other		95				112
Total	$	20,381			$	22,520			Total	$	4,048			$	4,928
									Long-term debt	$	12,900			$	15,660
									Owners’ equity
									Common stock and paid-in surplus	$	40,500			$	40,500
Fixed assets									Accumulated retained earnings		15,679				39,477
Net plant and equipment	$	52,746			$	78,045			Total	$	56,179			$	79,977
Total assets	$	73,127			$	100,565			Total liabilities and owners’ equity	$	73,127			$	100,565

SMOLIRA GOLF, INC. 2016 Income Statement
Sales			$	188,370
Cost of goods sold				126,703
Depreciation				5,283
EBIT			$	56,384
Interest paid				1,380
Taxable income			$	55,004
Taxes				19,251
Net income			$	35,753
Dividends	$	11,955
Retained earnings		23,798

Smolira Golf has 11,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $82.
  
What is the price–earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
Price–earnings ratio             times
  
What is the price–sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
Price–sales ratio             times
  
What are the dividends per share? (Do not round intermediate calculations and 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 2016?

Answer 1

Earnings per share:
Net Income			35753
Divide: Shares outstanding			11000
Earnings per share:			3.25
Book value per share:
Common stock and paid in			40500
Add: Retained earnings			39477
Total Stockholder's equity on 2016			79977
Divide: Shares outstanding			11000
Book value per share:			7.27
Req 1.
Price earnings ratio:
Market price			82
Divide: Earnings per share			3.25
Price earnings ratio:			25.23
Req 2.
Price sales ratio
Market price per share			82
Divide: Sales per share			17.12
	(188370/11000)
Price sales ratio			4.79
Req 3.
Dividend per share:
Total dividend			11955
Divide: shares outstanding			11000
Dividend per share:			1.09
Req 4.
Market to book ratio
Market price per share			82
Divide: Book value per share			7.27
Mmarket to book ratio			11.28