Sycip was tasked to analyze the earnings performance of Alamo Transport Corporation. The following data were gathered from Alamo's financial statements and from report of the closing market prices of shares: Profit for 2020 6,643,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Sycip was tasked to analyze the earnings performance of Alamo Transport
Corporation.
The following data were gathered from Alamo's financial statements and from a
report of the closing market prices of
shares:
Profit for 2020
6,643,000
Preference dividends declared during 2020
600,000
Ordinary dividends declared Dec 31, 2020
2,620,000
Number of Alamo ordinary shares
outstanding:
01-Jan-20
1,500,000shares
31-Dec-20
1,600,000shares
Market price per ordinary share on Dec 31,
150
2015
Calculate the following ratios relating to the
Alamo share:
1. Basic earnings per ordinary share
2. Price-earnings ratio
I
Transcribed Image Text:Sycip was tasked to analyze the earnings performance of Alamo Transport Corporation. The following data were gathered from Alamo's financial statements and from a report of the closing market prices of shares: Profit for 2020 6,643,000 Preference dividends declared during 2020 600,000 Ordinary dividends declared Dec 31, 2020 2,620,000 Number of Alamo ordinary shares outstanding: 01-Jan-20 1,500,000shares 31-Dec-20 1,600,000shares Market price per ordinary share on Dec 31, 150 2015 Calculate the following ratios relating to the Alamo share: 1. Basic earnings per ordinary share 2. Price-earnings ratio I
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