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3.Calculating Earnings Per Share, Price-Earnings R...

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3.Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. a.Calculate the earnings per share of Bozo Oil?s common stock. b.Assuming that a share of Bozo Oil?s common stock has a market value of $40, what is the firm?s price-earnings ratio? c.Calculate the book value of a share of Bozo Oil?s common stock. (p. 461)

 

Paper#6919 | Written in 18-Jul-2015

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