Multiple choice

Question 1

ABC's Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8?

4 times

400 times

2 times

8 times

0.25 times

Question 2

ABC, Inc., has a market-to-book ratio of 2, net income of $86,044, a book value per share of $18.2, and 56,994 shares of stock outstanding. What is the price-earnings ratio?

Enter your answer rounded off to two decimal points.

Question 3

ABC's balance sheet indicates a book value of shareholders' equity of $781,785. The firm's earning per share are $3.2 and the price-earnings ratio is 12.36. If there are 45,263 shares outstanding, what is the market value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share.

Question 4

ABC's balance sheet indicates a book value of shareholders' equity of $782,852. The firm's earning per share are $3.2 and the price-earnings ratio is 12.05. If there are 48,412 shares outstanding, what is the book value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share