The Holtzman Corporation has assets of $444,000, current
liabilities of $51,000, and long-term liabilities of $71,000. There
is $35,500 in preferred stock outstanding; 20,000 shares of common
stock have been issued.
a. Compute book value (net worth) per share.
(Round your answer to 2 decimal places.)
b. If there is $25,700 in earnings available to
common stockholders, and Holtzman’s stock has a P/E of 19 times
earnings per share, what is the current price of the stock?
(Do not round intermediate calculations. Round your final
answer to 2 decimal places.)
c. What is the ratio of market value per share to
book value per share? (Do not round intermediate
calculations. Round your final answer to 2 decimal places.)
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