Question

according to the financial statements for samson electronics, incorporated, the firm has total assets valued at $374 million. it also has total liabilities of $222 million. company records indicate that the firm has issued 2 million shares of stock. based on the above information, calculate the book value for a share of samson electronics. note: round your answer to 2 decimal places. if a share of samson electronics, incorporated, currently has a market value of $50 a share, what is the market-to-book ratio? note: round your intermediate and final answer to 2 decimal places.

Answer 1

The book value per share of Samson Electronics is $76 and the market-to-book ratio is 0.66.

Step-by-step explanation:

Book value per share (BVPS) is calculated as the equity accessible to common shareholders divided by the total number of outstanding shares. This number calculates a company's book value per share and serves as the minimal measure of its equity.

Book value per share (BVPS) takes the ratio of a firm's common equity divided by its number of shares outstanding. Book value of equity per share effectively indicates a firm's net asset value (total assets - total liabilities) on a per-share basis.

The book value per share of Samson Electronics can be calculated by subtracting the total liabilities from the total assets and then dividing by the number of shares. In this case, the book value per share would be ($374 million - $222 million) / 2 million shares = $76 per share.

The market-to-book ratio can be calculated by dividing the market value per share by the book value per share. In this case, the market-to-book ratio would be $50 / $76 = 0.66