As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $16 million, liabilities of $11 million, after-tax earnings of $2.35 million, and 1.60 million outstanding shares of common stock.Calculate the earnings per share of Bozo Oil’s common stock.Note: Round your answer to 2 decimal places.Assuming a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.Calculate the book value of a share of Bozo Oil’s common stock.Note: Round your answer to 2 decimal places.

Earnings per share refer to the net income earned per share outstanding of the company. A Price…

Answered: As a stockholder of Bozo Oil Company,…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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As a stockholder of Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $16 million, liabilities of $11 million, after-tax earnings of $2.35 million, and 1.60 million outstanding shares of common stock.

Calculate the earnings per share of Bozo Oil’s common stock.

Note: Round your answer to 2 decimal places.
Assuming a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?

Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.
Calculate the book value of a share of Bozo Oil’s common stock.

Note: Round your answer to 2 decimal places.