Question

Essentials of corporate finance I NEED HELP, Thanks!

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2009 and 2010
2009 2010 2009 2010
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 2,791 $ 2,607 Accounts payable $ 2,223 $ 2,740
Accounts receivable 4,697 5,641 Notes payable 1,820 2,256
Inventory 12,758 13,642 Other 104 121

Total $ 20,246 $ 21,890 Total $ 4,147 $ 5,117

Long-term debt $ 14,700 $ 17,460
Owners’ equity
Common stock
and paid-in surplus $ 45,000 $ 45,000
Fixed assets Accumulated retained earnings 15,724 40,134

Net plant and equipment 59,325 85,821 Total $ 60,724 $ 85,134

Total assets $ 79,571 $ 107,711 Total liabilities and owners’ equity $ 79,571 $ 107,711

SMOLIRA GOLF, INC.
2010 Income Statement
Sales $ 190,170
Cost of goods sold 127,603
Depreciation 5,193

EBIT $ 57,374
Interest paid 1,290

Taxable income $ 56,084
Taxes 19,629

Net income $ 36,455

Dividends $ 12,045
Retained earnings 24,410

Smolira Golf has 12,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2010 was $91.

Requirement 1:
What is the price-earnings ratio? (Round your answer to 2 decimal places (e.g., 32.16).)

Price-earnings ratio

Requirement 2:
What is the price-sales ratio?(Round your answer to 2 decimal places (e.g., 32.16).)

Price-sales ratio

Requirement 3:
What are the dividends per share? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

Dividends per share $

Requirement 4:
What is the market-to-book ratio at the end of 2010? (Round your answer to 2 decimal places (e.g., 32.16).)

Solutions

Expert Solution
No answers


Submit Your Answer