Question - Amigo Software Inc. has total assets of $889,000, current liabilities of $192,000, and long-term liabilities of $154,000. There is $87,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
a. Compute book value (net worth) per share.
b. If there is $56,300 in earnings available to common stockholders, and the firm's stock has a P/E of 23 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?