Q44. An analyst gathered the following information from a company's most recent financial statements(U.S.$ in millions): Preferred stock | 40 | Common stock | 120 | Additional paid-in capital | 30 | Retained earnings | 190 | Treasury stock | (55) | Total shareholders? Equity | 325 | Total number of common shares outstanding | 10 million | Tax rate | 40% |
The analyst also determined that the company uses the LIFO inventory method, but most companies in the industry use the FIFO method. The footnotes to the financial statements indicate that if the company had used the FIFO method, the inventory balance would have been $45 million higher than the amount reported on the company's most recent financial statements. If the company's (common stock is currently selling for $59 per share, the most appropriate price to book value ratio to use in valuing he company is: A.1.59 B.1.68 C.1.79 D.1.89
[此贴子已经被作者于2007-10-29 20:06:40编辑过] | 
发表于 2007-10-29 19:12
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