Assignment 1
This assignment will be worth 8% of your final grade. Please show your work in MS Word or MS Excel (if applicable). Please submit your assignment via the assignment folder no later than Sunday, June 16, 2013. All work must be done on your own.Good Luck!
(1.5 points) Rickroll Juice Inc. has assets of $4,500,000, liabilities of $2,400,000, and $300,000 in preferred stock outstanding. There have been 300,000 shares of common stock issued.
Compute the book value per share
If the firm has earnings per share of $2.50 and a P/E ratio of 8, what is the stock price per share?
What is the ratio of market value per share to book value per share?
Which value is considered more of a primary concern to the financial manager, security analyst and stockholders?
(2 points) Calculate the 13 different financial ratios found in Chapter 3 given the following information (assume a 360 day year):
Jason Corporation
Balance Sheet
12/31/2012
 
 
Assets
 
Current Assets:
 
Cash
$150,000
Marketable securities
80,000
Accounts receivable (net)
520,000
Inventory
410,000
Total current assets
1,160,000
Investments
240,000
Net plant and equipment
900,000
Total assets
2,300,000
 
 
Liabilities and Stockholders’ Equity
 
Current liabilities:
 
Accounts payable
275,000
Notes payable
150,000
Accrued taxes
65,000
Total current liabilities
490,000
Long-term liabilities:
 
Bonds payable
460,000
Total liabilities
950,000
Stockholders equity
 
Preferred stock, $100 par value
300,000
Common stock, $5 par value
100,000
Capital paid in excess of par
420,000
Retained earnings
530,000
Total stockholders equity
1,350,000
Total liabilities and stockholders’ equity
2,300,000
 
 
Jason Corporation
Income Statement
For the Year Ending 12/31/2012
 
 
Sales (on credit)
$5,200,000
Less: Cost of goods sold
3,300,000
Gross profit
1,700,000
Less: Selling and admin expenses*
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