Question

SOA Cycles is a Charming, CA based motorcycle shop. Their stock currently sells for $ \$ 58.07 $ per share and the company earns $ \$ 23 $ million in net income, which comes out to $ \$ 4.72 $ per share. If they currently have $ \$ 360 $ million in total shareholders' equity on the books, what is their market-to-book ratio? That is, how many times larger is the market value of the firm's equity than what they are stating on the books?

Name: soa cycles is a charming ca based motorcycle shop their stock currently sells for 5807 per share and the company earns 23 million in net income which comes out to 472 per share if they curre 61478
Uploaded: 2020-04-26T13:37:16-08:00
Duration: 4 min 53 s
Channel: Amit Srivastava
Description: soa cycles is a charming ca based motorcycle shop their stock currently sells for 5807 per share and the company earns 23 million in net income which comes out to 472 per share if they curre 61478

          SOA Cycles is a Charming, CA based motorcycle shop. Their stock currently sells for \( \$ 58.07 \) per share and the company earns \( \$ 23 \) million in net income, which comes out to \( \$ 4.72 \) per share. If they currently have \( \$ 360 \) million in total shareholders' equity on the books, what is their market-to-book ratio? That is, how many times larger is the market value of the firm's equity than what they are stating on the books?

Added by Jason M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Amit Srivastava

04/26/2020

Step 1

Book value per share = Total shareholders' equity / Number of shares outstanding Book value per share = \$ \\$360,000,000 / \\$58.07 \$ per share Book value per share = \\$6.20 per share Show more…

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SOA Cycles is a Charming, CA based motorcycle shop. Their stock currently sells for $ \$ 58.07 $ per share and the company earns $ \$ 23 $ million in net income, which comes out to $ \$ 4.72 $ per share. If they currently have $ \$ 360 $ million in total shareholders' equity on the books, what is their market-to-book ratio? That is, how many times larger is the market value of the firm's equity than what they are stating on the books?