Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. ABC Company's net income for 2021 was $100,000. At December 31, 2021 ABC Company had 50,000 shares of stock that were traded in the

image text in transcribed
2. ABC Company's net income for 2021 was $100,000. At December 31, 2021 ABC Company had 50,000 shares of stock that were traded in the market. Also, at December 31, ABC's stock price was $20 per share. At December 31, 2021 the price to earnings ratio for the S&P 500 was 24 times earnings A. What was ABC Company's earnings per share for 2021 B. What was ABC Company's price to earnings ratio at December 31, 2021 C. Comparing ABC Company's stock to the S&P 500 is ABC's stock more expensive or cheaper than the market

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Discuss effective techniques for reducing stage fright.

Answered: 1 week ago