A stock's price will change due to either a change in the company's EPS and/or a change in the multiple of EPS (the P/E ratio) that investors are willing to pay. Point out a time period in the graph when the stock price changed due to an increase or decrease in the P/E ratio (while the eps was fairly stable) rather than to a change in the earnings per share (while the P/E ratio remained fairly stable). Describe what caused the stock price to change (ie change in EPS or P/E?). 2 marks Economics Charting Portfolio Analysis Display - Events O-Ci -C Apr 1, 2010 - Mar 30, 2020 175.00 158.09 125.00 100.00 75.00 50.00 16 ple Watchlist Industry Deals Screening Activism / Governance StreetAccount 17 18 19 MSFT-USA Series - wo 20 Microsoft Corporation (MSFT-USA) $158.09 D 8.39 (5.60%) 12:14:28 PM USD 21 O: 29.71 H: 29.86 L: 28.62 C: 29.16 22 23 + Compare 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 EPS - LTM 1.81 40 41 42 43 PE - LTM 16.11 44 + 45 46 47 2011 2012 2013 2014 2015 2016 48 49 50 mumm 25.00 5.74 3.00 4.00 3.00 2.00 1.00 1 X 50.00 27.53 2017 2018 2019 2020 1d 5d 1m 3m 6m YTD 1y 2y 5y 10y 15y 20y - A stock's price will change due to either a change in the company's EPS and/or a change in the multiple of EPS (the P/E ratio) that investors are willing to pay. Point out a time period in the graph when the stock price changed due to an increase or decrease in the P/E ratio (while the eps was fairly stable) rather than to a change in the earnings per share (while the P/E ratio remained fairly stable). Describe what caused the stock price to change (ie change in EPS or P/E?). 2 marks Economics Charting Portfolio Analysis Display - Events O-Ci -C Apr 1, 2010 - Mar 30, 2020 175.00 158.09 125.00 100.00 75.00 50.00 16 ple Watchlist Industry Deals Screening Activism / Governance StreetAccount 17 18 19 MSFT-USA Series - wo 20 Microsoft Corporation (MSFT-USA) $158.09 D 8.39 (5.60%) 12:14:28 PM USD 21 O: 29.71 H: 29.86 L: 28.62 C: 29.16 22 23 + Compare 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 EPS - LTM 1.81 40 41 42 43 PE - LTM 16.11 44 + 45 46 47 2011 2012 2013 2014 2015 2016 48 49 50 mumm 25.00 5.74 3.00 4.00 3.00 2.00 1.00 1 X 50.00 27.53 2017 2018 2019 2020 1d 5d 1m 3m 6m YTD 1y 2y 5y 10y 15y 20y