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lions [1.4K]
3 years ago
9

As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o

f $15 million, liabilities of $9 million, after-tax earnings of $3 million, and 761,000 outstanding shares of common stock.
Required:
a. Calculate the earnings per share of Bozo Oils common stock. (Round your answer to 2 decimal places.)
b. Assuming a share of Bozo Oil's common stock has a market value of $40, What is the firm's price-earnings ratio?. (Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.)
c. Calculate the book value of a share of Bozo Oil's common stock. (Round your answer to 2 decimal places)
Business
1 answer:
fgiga [73]3 years ago
7 0

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

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What is unemployment insurance fund?

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3 years ago
Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
Svetlanka [38]

Answer:

D) all of the above

Explanation:

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If rate = 2%;

PV = 50/0.02 = $2,500

With these two calculations, we see that;

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2 years ago
Read 2 more answers
At December 31, 2020, Pharoah Company has outstanding three long-term debt issues. The first is a $2,370,000 note payable which
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Answer:

The first is a $2,370,000 note payable which matures June 30, 2023.

The second is a $5,580,000 bond issue which matures September 30, 2024.

annual sinking fund payments of $2,570,000 in each of the years 2022 through 2026.

Year       Amount of long term debt       Working      

2021                   $0

2022              $2,570,000

2023              $4,940,000                       = $2,570,000 + $2,370,000

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2025              $2,570,000

2026              $2,570,000

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SCORPION-xisa [38]

Based on the fact that the Euro will appreciate, the best thing for Johnson Co. to do is to e.purchase euros forward.

<h3>What should Johnson Co. do?</h3>

The fact that the Euro is going to appreciate in value means that Johnson Co. will have to pay more in future.

They should therefore lock in a favorable Euro rate now by purchasing Euros at a forward rate.

Find out more on purchasing forward at brainly.com/question/14090802.

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