The rockford corporation has assets of 380,000, current liabilities of 40,000, and long-term liabilities of 70,000. There is 30,000 in preferred stock outstanding: 20,000 shares of common stock have been issued.
a. Compute book value (net worth) per share
b. if there is $25,000 in earnings available to common stockholders and rockford's stock has a p/e of 15 times earnings per share, what is the current price of the stock?
c. What is the ratio of market value per share to book value per share?