FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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Chapter 2, Problem 23P
Summary Introduction
To calculate:The book value per share of Landers Nursery and Garden Stores.
Introduction:
Book value per share:
It is a metric used by investors to know whether the price of a share is undervalued or overvalued by comparing it to the market value per share. If a company’s book value per share is lower than the market value per share, its stock is overvalued and, if the book value per share is higher than the market value per share, the stock is undervalued.
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Landers Nursery and Garden Stores has current assets of $319,000 and fixed assets of $225,000. Current liabilities are $112,000 and long-term liabilities are $179,000. There is $40,000 in preferred stock outstanding and the firm has issued 25,000 shares of common stock.
Landers Nursery and Garden Stores has current assets of $220,000 and fixed assets of $170,000. Current liabilities are $80,000 and long-term liabilities are $140,000. There is $40,000 in preferred stock outstanding and the firm has issued 25,000 shares of common stock. Compute book value (net worth) per share.
Total assets of a firm are $2,000,000, and the total liabilities are $1,000,000. 1,000,000 shares of common stock have been issued and 500,000 shares are outstanding. The market price of the stock is $20, and Net Income for the past year was $300,000. Calculate the book value of the firm. Calculate the book value per share. Calculate the P/E ratio.
Chapter 2 Solutions
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
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