Can you help me with these price to book value problems?
Yi Corporation has no preferred stock and reports the following:
Earnings per share $1.80
Dividends per share $0.72
Book Value per share-end of year $8.62
a. If price-to-book value at the end of 2009 equals 1.00, and return on beginning of year equity is expected to remain constant, then cost of equity (to nearest percent) equals:
D) Not determinable
b. If Yi Corporation had preferred stock outstanding then the earnings per share amount of $1.80 would be
B) cannot be determined.
C) greater than $1.80.
D) less than $1.80.
c. Interim financial reports are less _________ than annual financial reports.
Price to book value = 1 = Price/$8.62
Price = $8.62
Cost of equity = $0.72/$8.62 = 8.35%
NOTE: The correct answer is not in the choices. ...
Yi Corporations for financial statement analysis is examined.