Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check Botox Facial Care had earnings after taxes of $368,000 in 20x1 with 200,000 shares of stock outstanding. The stock price was $65.80. In 20x2,

image text in transcribed
Check Botox Facial Care had earnings after taxes of $368,000 in 20x1 with 200,000 shares of stock outstanding. The stock price was $65.80. In 20x2, earnings after taxes increased to $406,000 with the same 200,000 shares outstanding. The stock price was $73.00 a. Compute earnings per share and the P/E ratio for 20X1. (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.) Earnings per share P/E ratio times b. Compute earnings per share and the P/E ratio for 20x2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Earnings per share P/E ratio times c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.) The stock price percent while EPS percent

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

Multinational Finance

Authors: Kirt C. Butler

3rd Edition

0324177453, 978-0324177459

More Books

Students also viewed these Finance questions