GIVEN: Assets= $12,000,000 Liabilities= $9,000,000 2016 Income = $2,000,000 #Common Shares Outstanding= 500,000
Compute Book Value per share.
What does ‘book value’ per share represent to the investor?
Compute Earnings per Share
If the current Price to Earnings Ratio=22, what is the current market price of the stock?
What does a ‘high’ PE Ratio indicaate about Investor expectations? Name two factors that could affect a PE Ratio.