Amigo Software, Inc., has total assets of $800,000, current liabilities of $150,000, and long-term liabilities of $120,000. These is $65,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
a. compute book value (net worth) per share.
b. If there is $48,000 in earnings available to common stockholders and the firm's stockholders a P/E of 20 times earnings per share, what is the current price of the stock ?
c. What is the ratio of market value per share to book value per share? (round two place to the right of decimal point)