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75,000 Sam's Town Ratios
Earnings Per Share P/E $0.57 $12.00 / $.59= Book Value per Share Current Ratio 21 $201,350 / 60,000= $256,425 / $125,075 = The portion of the Net Income earned by
each share of common stock is $.57.
The stock is selling at 21 times earnings
which means if you pay $12 per share
and there is no growth in earnings, you
will earn 4.76% on your investment which
is low considering that there will be risk
with this type of investment. You would
be banking on either future earnings
being a lot higher or else that the price of
the stock is going to go up.
$3.34 The value the books are carrying for
each share of common stock is $3.33.
2.04 For every $1 that is owed that has to be
paid withing the next 12 months, there is
$1.86 in assets that are expected to be
used up in generating revenues or to be
converted to cash within the next 12
months. $1.86 is probably too low since
almost half of the current assets are in
inventory. ROA $35,350 / (($369,...
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- Fall '14