Concept: Ratios: Book Value per Share of Common Stock4m
Problem: MoneyCo had sales revenue and net income during the current year of $500,000 and $60,000, respectively. The total amount of stockholders’ equity was $600,000, and common shares outstanding were 120,000 all year. If the market price of the stock is $10, what is the book value per share of common stock?2m
Problem: Tougher Company’s current year income statement showed an EPS of $1.25 per share. If total equity was $600,000 (40,000 common shares, $1 par), preferred dividends were $10,000 (10,000 preferred shares with $10 book value each), and the market price of common and preferred stock are $25 and $50, respectively, what is the book value per share of common stock?3m
Pawnee Planes has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $4 billion in long-term debt, and $5 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $26 per share. What is Pawnee’s market-to-book ratio?