1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetllana [295]
3 years ago
8

Lancaster bakery has net fixed assets of $329,700, current assets of $87,200, a price-earnings ratio of 12.8, a debt-equity rati

o of 0.42, and earnings per share of $1.97. what is the market-to-book ratio if there are 36,000 shares of stock outstanding?
Business
1 answer:
Verizon [17]3 years ago
8 0

Market to book ratio is the ration of market price per share divided by the book value per share, it can be mathematically expressed as below:


Market to Book Value=\frac{Market Value Per Share}{Book Value Per Share}

In this problem the first step is to find Market Value per share

PE Ratio is given by the following formula:

PE Ratio=\frac{Market Price Per Share }{Earning Per Share}

12.8=\frac{Market Price Per Share }{1.97}

Market Price Per Share=$25.216

We now find Book Value Per Share, Book Value is nothing but the Equity Value of the Organization, In the given problem, we don't have this information, but we have total assets, which amounts to $416900($329700+$87200). Using Debt Ratio we can find book value per share as below:

Lets assume Shareholders Equity is x, Thus total liability will be Total Assets-x

Debt Equity Ratio is given as below:

Debt Equity Ratio=\frac{Total Liabilities}{Equity}

0.42=\frac{416900-x}{x}

x=$293592

Book Value per share=$293592/36000

Book Value per Share=8.155

Market to book value=25.216/8.15533

Market to book value ratio= 3.09

You might be interested in
The definition of input , out put and processing please
goldfiish [28.3K]

The best definitions of input, output and processing are as follows:

  • Input refers to the resources that are used up in production to create further value, finished goods, or more input for further processing.

  • Processing is the intervening activity that changes the input to output.

  • Output is the product of processing input or resources.  Output is typically the finished outcome from a processing activity.

<h3>What is the relationship between input, output, and processing?</h3>

Processing is at the center of input and output.  

Processing involves changing, manipulating, or transforming input resources into output or finished products.

Thus, the definitions of input, output and processing are as given above.

Learn more about input, output, and processing at brainly.com/question/25250720

5 0
2 years ago
Which of the following is a characteristic of economic services:
9966 [12]

Answer:

useful

Explanation:

i got it from USA test prep

4 0
3 years ago
One major difference between low-income children who participated in the high scope preschool project and those that did not par
Ganezh [65]

One major difference between low-income children who participated in the high-scope preschool project and those that did not participate was that at the age of 27 years, <u>those who practiced were more likely to be married and own their house</u>.

The Perry Preschool project set up the lasting human and economic price of early life schooling and caused the establishment of the HighScope education studies foundation and one of the first early formative years applications in the u.s. intentionally designed to increase faculty fulfillment for preschool.

Outcomes of the Perry Preschool program consist of: better school fulfillment; extended excessive college graduation prices amongst women; higher employment charges; better profits; and notably decrease crime fees. There were no lasting profits on checks of intellectual performance (IQ exams).

The HighScope educational research foundation research strategies for early formative years of education are primarily based on the methods of the 1962 Perry Preschool observation. It was founded in 1970 with the aid of psychologist David Weikart.

Learn more about the Perry Preschool program here brainly.com/question/25630852

#SPJ4

3 0
2 years ago
You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento
Contact [7]

Answer:

The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)

Explanation:

There are 3 key elements of working capital. These are;

  • Inventory
  • Accounts payable
  • Accounts receivable

Given;

increase in inventory = $8,000

increase in Accounts payable = $2,500

Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500

= -$5,500

8 0
3 years ago
What is a tagline?<br><br> (Principles Of Business Management)
a_sh-v [17]
A tagline is a catchphrase or slogan used to advertise a brand. It is a short phrase or a series of phrases,often presented in conjunction with a brand logo,that is intended to add meaning to a brand
4 0
3 years ago
Read 2 more answers
Other questions:
  • The Young Americans for Freedom: Question 9 options: believed that the free market assured personal freedom. worked in tandem wi
    8·2 answers
  • The _____ method uses independent and dependent variables to reveal cause-and-effect relationships.a) descriptiveb) correlationa
    13·1 answer
  • Suppose the spot and three-month forward rates for the yen are ¥102.21 and ¥101.18, respectively.a. Is the yen expected to get s
    12·1 answer
  • Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The co
    7·1 answer
  • Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
    5·1 answer
  • A man buys a racehorse for ​$20 comma 00020,000 and enters it in two races. He plans to sell the horse​ afterward, hoping to mak
    11·1 answer
  • On June 30, 2017, Prouty Co. had outstanding 9%, $5,000,000 face amount, 10-year bonds that pay interest semi-annually on June 3
    11·1 answer
  • During 2020, Flint Corporation reported net sales of $5,490,000 and net income of $1,320,000. Its balance sheet reported average
    13·1 answer
  • Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week aver
    6·1 answer
  • andrea was physically present in the united states for 150 days in 2023, 120 days in 2022, and 90 days in 2021. under the substa
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!