Calculating Ratios. According to the financial statements for Samson Electronics, Inc., the firm has total assets valued at$220 million. It also has total liabilities of $140 million. Company records indicate that the firm has issued 2 million shares ofstock (Obi 3)a. Based on the above information, calculate the book value for a share of Samson Electronics. b. If a share of Samson Electronics, Inc, currently has a market value of $50 a share, what is the market-to-book ratio?c Based on the market-to-book ratio, is a share of Samson Electronics overpriced or underpriced? Explain your answer.

a.  book value for a share of Samson Electronics =  Net Asset of the company / Numbers of common share

                                                            = $220million - $140million

                                                                           2million

                                                           =  $80million

                                                                  2million

                                                           =     $40 per share

b. Market - to- book ratio =  market value per share / book value per share

                                          =   $50/$40

                                          = 1.25

Based on the market - to -book ratio, the share  Samson Electronics is overpriced. Where the market-to-book ratio of share of a company is higher than 1, it indicates that the share is overvalued.

Explanation:

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

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giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

i believe it’s b because the rest don’t make sense