Amigo Software, Inc., has total assets of $891,000, current liabilities of $240,000, and long-term liabilities of $188,000. There is $88,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
Compute book value (net worth) per share.
If there is $50,600 in earnings available to common stockholders and the firm's stock has a P/E of 26 times earnings per share, what is the current price of the stock?
What is the ratio of market value per share to book value per share?