17.The following selected financial information is available for Gone.com, Inc:
Common stockholders' equity$80,000,000
Common shares76,000,000
Market price per common share$30
Required:
a.Compute the market to book value ratio.
b.What does this ratio measure?
c.What does the result from part (a) say about Gone.com?
18.Data (amounts in $000, except for market price) is provided below for Synovial Company:
December 31, 2007
Current assets$ 800
Fixed assets4,200
Current liabilities600
Long-term liabilities3,000
Stockholders' equity1,400
Net income225
Dividends paid90
Market value950
Number of common shares outstanding40
Market price per share$23.75
Required:
Compute (a) debt (long-term) to equity, (b) return on equity, (c) return on assets,
(d) dividend payout, (e) financial leverage, and (f) market value to book value.