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please help! Please answer all of the questions below and show as much work as possible. 1) What is the difference between Earnings per Share

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Please answer all of the questions below and show as much work as possible. 1) What is the difference between Earnings per Share and P/E ratio? What do they measure? (10pts) Here is some recent financial data for a number of companies. Net Income and \# of shares outstanding are in thousands. 2) For each of the above companies, compute a) earnings per share and b ) the P/E ratio. Your answer should be calculated in an Excel workbook and you should use Excel formulas to do your calculations. I need to see all work, and the formulas will be "the work". Be sure to label the results so I know which company is which. (36pts, 6pts per company) 3) As you answer these questions keep in mind that stock value (price) can be thought of as a function of profit, growth opportunities and risk. Your answers should identify which of those 3 factors seems prominent in the determination of the price of a stock. When I ask "how can you tell" I am looking for you to identify a piece of data on which you have based your answer. All of these can be answered in a few lines. a) Look at Louis Vuitton and Steven Madden. What is it that makes Louis Vuitton stock sell at over $726 a share while SHOO sells for over $32 a share? is it profit? Growth potential? Risk? How can you tell? (9pts) b) Look at DXLG and LULU. Is it profit, growth potential or risk that is the main reason why a share Use the above chart to calculate the following 4) Quick Ratio- (5pts) 5) Current Ratio - (5pts) 6) Inventory Turnover-(5pts) 7) Debt Ratio - (5pts) 8) Total Asset Turnover - (5pts) Your calculations should be done in Excel and you should use Excel formulas to do your calculations. Use text boxes to explain your answers. Do not round up, use two decimal places. b) Look at DXLG and LULU. Is it profit, growth potential or risk that is the main reason why a share of DXLG stock costs about \$6 while LULU stock is worth over $315 a share? How can you tell? (9pts) c) Which stock would you avoid purchasing, why? (5pts) d) If you were given a choice of investing your money into one of the companies above, who would it be? Why did you choose that company? Growth, Earnings, both? (4pts)

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