Dandelion Fields has a Tobin's Q of .96. The replacement cost of the firm's assets is $225,000 and the market value

A firm has total assets with a current book value of $68,700, a current market value of $74,300, and a current replacement cost of $79,200. What is the value of Tobin's Q?    A.  .85 B.  .87 C.  .90 D.  .92 E.  .94 Tobin's Q = $74,300/$79,200 = .94

90.	Dixie Supply has total assets with a current book value of $368,900 and a current replacement cost of $486,200. The market value of these assets is $464,800. What is the value of Tobin's Q?    A.  .86 B.  .92 C.  .96 D.  1.01 E.  1.06 Tobin's Q = $464,800/$486,200 = .96

91.

Dandelion Fields has a Tobin's Q of .96. The replacement cost of the firm's assets is $225,000 and the market value of the firm's debt is $101,000. The firm has 20,000 shares of stock outstanding and a book value per share of $2.09. What is the market to book ratio?    A.  2.75 times B.  3.18 times C.  3.54 times D.  4.01 times E.  4.20 times Market value of assets = .96 × $225,000 = $216,000 Market value of equity = $216,000 - $101,000 = $115,000 Market value per share $115,000/20,000 = $5.75 Market-to-book ratio = $5.75/$2.09 = 2.75 times

92.

A firm has annual sales of $320,000, a price-earnings ratio of 24, and a profit margin of 4.2 percent. There are 14,000 shares of stock outstanding. What is the price-sales ratio?    A.  0.97 B.  1.01 C.  1.08 D.  1.15 E.  1.22 Earnings per share = ($320,000 × .042)/14,000 = $0.96 Price-sales ratio = (24 × $0.96)/($320,000/14,000) = 1.01