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# Princeton Equity, Langford Sweets.

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Division B has a larger profit margin per dollar. 1.
Princeton Corporation has assets of \$384,000, current liabilities of \$54,000, and long-term liabilities of \$79,000. There is \$36,800 in preferred stock outstanding; 20,000 shares of common stock have been issued.
(a) Compute book value (net worth) per share. (Round your answer to 2 decimal places).
Book value per share is \$................................
(b) If there is \$32,800 in earnings available to common stockholders and Princeton's stock has a P/E of 19 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places).
Current price then will be \$..............................................
(c) What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2.
Langford Sweets, Inc., has two divisions. Division A has a profit of \$141,000 on sales of \$2,700,000. Division B is only able to make \$34,000 on sales of \$347,000.
(a) Compute the profit margins (return on sales) for each division. (Round your answers to 2 decimal places).
Profit margin
Division A has ..................%
Division B has .....................%
________________________________________
(b) Based on the profit margins (returns on sales), which division is superior?

Division A
Or Division B