Investments

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A firm has current assets that could be sold for their book value of $7 million. The book value of its fixed assets is $57 million, but they could be sold for $99 million today. The firm has total debt with a book value of $32 million but interest rate declines have caused the market value of the debt to increase to $47 million.

What is this firm's market-to-book ratio?

  • Investments -

    An analyst gathers the following information about Meyer, Inc.:

    • Meyer has 1,300 shares of 8% cumulative preferred stock outstanding, with a par value of $240, and liquidation value of $250.

    • Meyer has 22,400 shares of common stock outstanding, with a par value of $52.

    • Meyer had retained earnings at the beginning of the year of $5,050,000.

    • Net income for the year was $74,000.

    • This year, for the first time in its history, Meyer paid no dividends on preferred or common stock.

    What is the book value per share of Meyer's common stock?

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