CORPORATE FINANCE-ACCESS >CUSTOM<
CORPORATE FINANCE-ACCESS >CUSTOM<
11th Edition
ISBN: 9781260170016
Author: Ross
Publisher: MCG CUSTOM
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Chapter 20, Problem 5CQ
Summary Introduction

To determine: Whether Z will be upset over G for underpricing.

Underpricing:

The underpricing term refers to the offering of the stocks or the bond at a low price than before. The stocks or the debt are said to be underpriced when they are traded at a lower price than on which it was issued first for trade.

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ViewPoint Security's financial statements, which were constructed a few days ago, report the company has $1 million of common equity with 500,000 shares of common stock outstanding and its net income was $2.1 million. If ViewPoint's common stock currently sells for $33.60 per share, what are its (a) P/E ratio and (b) M/B ratio?
Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 520,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answers to two decimal places.)
ViewPoints Security's financial statements, which were constructed a few days ago, report the companys has $1 million of common equity with 500,000 shares of common stock outstanding and its net income was $2.1 million. If ViewPoint's common stock currently sells for $33.60 per sahre, what are (a) P/E ratio and (b) M/B ratio?
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