Answer:
The calculations are shown below
Explanation:
The computations are shown below:
But before that, first we have to prepare the income statement so that the values could come
Particulars Amount
Revenues $99,700
Less: Cost of sales -$64,700
Gross profit $35,000
Less: Interest expenses -$1,800
Earnings before tax $33,200
Less: Taxes -$11,620
Net income $21,580
So, the calculations are shown below:
1. Earnings per share = Net income ÷ Common stock outstanding
= $21,580 ÷ 16,000 shares
= $1.35 per share
2. Price earnings ratio = Stock price per share ÷ Earnings per share
= $22 ÷ $1.35
= 16.3 times
3. Long term debt to equity ratio = Long term debt ÷ Total equity
= $45,800 ÷ $120,000
= 0.38 times
4. Total market value = Number of shares outstanding × Market price per share
= 16,000 shares × $22
= $352,000
