Botox Facial care had earnings after taxes of dollar 292,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $ 45.80. In 20X2, earnings after taxes increased to dollar 320,000 with the same 200,000 shares outstanding. The stock price was dollar 74.00. Compute earnings per share and the P/E ratio for 20X1 (The P/E ratio equals the stock price divided by earnings per share) Compute earnings per share and the P/E ratio tar 20X2. Why did the P/E ratio change? Stilley Corporation had earnings after taxes of dollar 455,000 in 20X2 with 260,000 shares outstanding. The stock price was dollar 44.60. In 20X3, earnings after taxes declined to dollar 273,000 with the same 260,000 shares outstanding. The stock price declined to dollar 30.80. Compute earnings per share and the P/E ratio for 20X2. Compute earnings per share and the P/E ratio for 20X3. Nova Electrics anticipates cash flow from operating activities of dollar 12 million in 20X1. It will need to spend dollar 8.2 million on capital investments to remain competitive within the industry. Common stock dividends are projected at dollar 1.60 million and preferred stock dividends at dollar 1.25 What is the firm's projected free cash flaw far the year 20X1? What does the concept of free cash flaw represent? Free cash flow represents the funds that are available for special financing activities, such as a leveraged buyout. Free cash flow equals cash flow from operating activities Free cash flow represents the funds that are available for investing activities, such as purchasing plant and equipment assets The Rogers Corporation has a gross profit of dollar 789,000 and dollar 249,000 in depreciation expense. The Evans Corporation also bas dollar 789,000 in gross profit, with dollar 46,000 in depreciation expense. Selling and administrative expense is dollar 216,000 for each company. Given that the tax rate is 40 percent, compute the cash flow for both companies. Calculate the difference in cash flow between the two firms