Sales/Total assets = 4.5× Return on assets (ROA) = 10.0% Return on equity (ROE) = 50.0%...

Sales/Total assets = 4.5×

Return on assets (ROA) = 10.0%

Return on equity (ROE) = 50.0%

Book Value of Stockholders’ equity = $30

Price/Earnings ratio = 6.0x

Common shares outstanding = 50

Market/Book ratio = 3.0x

A. Calculate the price of a share of the company’s common stock.

B. Calculate debt-to-assets ratio assuming the firm uses only debt and common equity.

C. What were sales last year?

D. What is the company’s market value?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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