Explain how earnings per share, dividends per share, and book value per share are calculated, and what

Question:

Explain how earnings per share, dividends per share, and book value per share are calculated, and what they mean. Why does the market price per share not equal the book value per share?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Question Posted: Oct 05, 2011 09:46 AM

See More Questions

Why does the market price of a bond vary over time?
Why does the market price of an option such as a warrant usually exceed its value as common stock?
Why does the market price of a security vary from the true equilibrium price?
Assume a retailer has fixed costs of $10,000, a unitvariable cost of $25, and a 50% retail margin. How many units must be sold for her tobreak-even? If she has a target profit of $200,000, how many...
In 2016, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: a. On May 12, 2016, they sold a painting (art) for $110,000 that was...
Alkanes and alkenes are hydrocarbons. They are composed of molecules which contain covalent bonds. For each of the molecules below, use a dot and cross diagram to show the bonding it contains. a....
When does a premium exist on an FX forward? A discount!
The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to...
The trial balances before and after adjustment for Metlock, Inc. at the end of its fiscal year are presented below. Exercise 3-17 (Video) The trial balances before and after adjustment for Metlock,...
Whitewater Adventures manufactures two models of kayaks, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect...
If DLeon starts depreciating fixed assets over 7 years rather than 10 years, would that affect (1) the physical stock of assets, (2) the balance sheet account for fixed assets, (3) the companys...
Explain briefly the tax treatment of (1) interest and dividends paid, (2) interest earned and dividends received, (3) capital gains, and (4) tax loss carry-back and carry-forward. How might each of...
Perform the indicated operations and express the result in simplest radical form with rationalized denominators. 55(65 35)
Briefly explain the difference between a k-factor model and the capital asset pricing model
Refer to the cost data, Picture below. Take off the square feet of wall forms and cubic yards of ready mix concrete for the walls of the elevator pit. Determine the total material and labor cost for...
possible Submit quiz A researcher studies water clarity at the same location in a lake on the same dates during the course of a year and repeats the measurements on the same dates 5 years later. The...
A liquid hydrocarbon mixture was made by adding 295 kg of benzene, 289 kg of toluene and 287 kg of p-xylene. Assume there is no change of volume upon mixing, i.e., Vmix=0 , in order to determine: 1....
b) Maseru Development Bank has R850 million credit with Matsieng Hydroelectric Power, with a maturity of eighteen months. The expected loss for Maseru Development Bank is R22 million, and the...
Price Fixing. Texaco, Inc., and Shell Oil Co. are competitors in the national and international oil and gasoline markets. They refi ne crude oil into gasoline and sell it to service station owners...
What is a content filter? Where is it placed in the network to gain the best result for the organization?
Determine all real roots of the function q(x) = cos 2 (x) + cos(x) 2.
What is a Eurodollar? If a French citizen deposits $10,000 in Chase Manhattan Bank in New York, have Eurodollars been created? What if the deposit is made in Barclays Bank in London Chase Manhattans...
You are the vice president of International Info change, headquartered in Chicago, Illinois. All shareholders of the firm live in the United States. Earlier this month, you obtained a loan of 5...
If most investors expect the same cash flows from Companies A and B but are more confident that A`s cash flows will be closer to their expected value, which company should have the higher stock...
Production numbers for 2 shifts are shown. The shift supervisor of Shift 2 insists to the production manager that her operators are more productive than the ones on Shift 1. Using a confidence level...
In a class, the scores that students got are as shown. What are the 25, 50, 75 and 100th percentiles for the data? 84 84 98 80 89 83 85 56 85 84 84 74 84 81 83 80 45 86 67 79 81 78 76 85 83 77 86 83...
Number of points made by Teams A and B are shown. Which statement is true based on running the F-Test Two-Sample for Variances in the Data Analysis pack in Excel? Use a confidence level of 10% to...

Explain how earnings per share, dividends per share, and book value per share are calculated, and what

Question:

Step by Step Answer:

Net income divided by shares outstanding equals earnings per share Dividends di...View the full answer

Fundamentals of Financial Management

Students also viewed these Finance questions