Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Botox Facial Care had earnings after taxes of $ 3 6 2 , 0 0 0 in 2 0 times 1 with 2 0

Botox Facial Care had earnings after taxes of $ 362,000 in 20\times 1 with 200,000 shares of stock outstanding. The stock price was $ 81.80. In 20\times 2, earnings after taxes increased to $ 450,000 with the same 200,000 shares outstanding. The stock price was $ 95.00. a. Compute earnings per share and the P / E ratio for 20 X 1.(The P / E ratio equals the stock price divided by earnings per share.)(Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Compute earnings per share and the P / E ratio for 20 X 2.(Do not round intermediate calculations. Round your final answers to 2 decimal places.) c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)

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

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

8th Edition

0077606779, 978-0697789945

More Books

Students also viewed these Finance questions