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Earnings Per Share (EPS) Calculation and Price-Earnings (P/E) Ratio Analysis: Calculate the earnings per share (EPS) and analyze the price-earnings (P/E) ratio for ABC Company

  1. Earnings Per Share (EPS) Calculation and Price-Earnings (P/E) Ratio Analysis:

Calculate the earnings per share (EPS) and analyze the price-earnings (P/E) ratio for ABC Company with the following information:

    • Net Income: $500,000
    • Weighted Average Shares Outstanding: 100,000
    • Market Price per Share: $25

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