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Percentage changes; ple ratios and investors' expectations Shown below are Gamma, Inc.'s earnings per share for a four-year period, along with the per-share market price
Percentage changes; ple ratios and investors' expectations Shown below are Gamma, Inc.'s earnings per share for a four-year period, along with the per-share market price of the company's stock at each year-end. The earnings in 2015 were the highest in the company's history. 2015 2014 2013 2012 Earnings per share $9 $7 $6 $7 Percentage change % % % % Year-end stock price $77 $140 $84 $70 Price-earnings ration 6.1. Compute the percentage change in earnings per share in 2013, 2014, and 2015. (Place your answers in the spaces provided above.) 6.2. Compute the ple ratio of stock at the end of each of the four years. (Place your answers in the spaces provided above.) 6.3. What does the ple ratio at the end of 2015 indicate about investors' expectations of earnings per share for the coming year? Explain your reasoning
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