Financial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 Net income $160 $171 Dividends on preferred stock $22 $17 Average shares outstanding 250 300 Stock price $11.92 $10.87 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings?
Financial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 Net income $160 $171 Dividends on preferred stock $22 $17 Average shares outstanding 250 300 Stock price $11.92 $10.87 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial information for Forever 18 includes the following selected data:
($ in millions) | 2024 | 2023 |
---|---|---|
Net income | $160 | $171 |
Dividends on |
$22 | $17 |
Average shares outstanding | 250 | 300 |
Stock price | $11.92 | $10.87 |
2-a. Calculate the price-earnings ratio in 2023 and 2024.
2-b. In which year is the stock priced lower in relation to reported earnings?
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