Wilson, Inc., has a current stock price of $43.50. For the past year, the company had net income of $7,050,000, total equity of $21,740,000, sales of $40,600,000, and 5.7 million shares of stock outstanding. What are earnings per share (EPS) ? What is the price-earnings ratio? What is the price-sales ratio? What is the book value per share? What is the market-to-book ratio?

Question

Linus

Business

11 January, 08:21

Wilson, Inc., has a current stock price of $43.50. For the past year, the company had net income of $7,050,000, total equity of $21,740,000, sales of $40,600,000, and 5.7 million shares of stock outstanding. What are earnings per share (EPS) ? What is the price-earnings ratio? What is the price-sales ratio? What is the book value per share? What is the market-to-book ratio?

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Answers (1)

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Jasmin Callahan · Answer 1

1. $1.24

2. 35.17

3. 6.107

4. $3.814

5. 11.405

Explanation:

Given that,

Current stock price = $43.50

Net income = $7,050,000

Total equity = $21,740,000

Sales = $40,600,000

shares of stock outstanding = 5.7 million

1. Earnings per share:

= Net income : shares of stock outstanding

= $7,050,000 : 5.7 million

= $1.24

2. Price-earnings ratio:

= Market price per share : EPS

= $43.50 : $1.24

= 35.17

3. Price-sales ratio:

= Market capitalization : Total sales

= ($43.50 * 5,700,000) : $40,600,000

= $247,950,000 : $40,600,000

= 6.107

4. Book value per share:

= Shareholder's equity : shares of stock outstanding

= $21,740,000 : 5,700,000

= $3.814

5. Market-to-book ratio:

= Market value per share : Book value per share

= $43.50 : $3.814

= 11.405