Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Textbook Question
Chapter 2, Problem 18P
Botox Facial Care had earnings after taxes of
a. Compute earnings per share and the P/E ratio for 20X1. The P/E ratio equals the stock price divided by earnings per share.
b. Compute earnings per share and the P/E ratio for 20X2.
c. Give a general explanation of why the P/E ratio changed.
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Boston Facial Care had earnings after taxes of $282,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $81.80.
In 20X2, earnings after taxes increased to $418,000 with the same 200,000 shares outstanding. The stock price was $94.00.
6. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not
reund intermediate calculations. Round your final answers to 2 decimal places.)
Earrings per share
b. Compute eamings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2
decimal places.)
Earings per share
P/E ratio
times
The stock price
times
3. Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal
places)
percent white EPS
percent.
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Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding.
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a. What are earnings per share (EPS)?
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b. What is the Price-earnings ratio?
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c. What is the Price sales ratio?
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d. What is Book value per share?
Botox Facial Care had earnings after taxes of $284,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $45.80. In 20X2, earnings after taxes increased to $350,000 with the same 200,000 shares outstanding. The stock price was $56.00.a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.)
Chapter 2 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 2 - Discuss some financial variables that affect the...Ch. 2 - What is the difference between book value per...Ch. 2 - Explain how depreciation generates actual cash...Ch. 2 - What is the difference between accumulated...Ch. 2 - How is the income statement related to the balance...Ch. 2 - Prob. 6DQCh. 2 - Explain why the statement of cash flows provides...Ch. 2 - What are the three primary sections of the...Ch. 2 - Prob. 9DQCh. 2 - Why is interest expense said to cost the firm...
Ch. 2 - Frantic Fast Foods had earnings after taxes of...Ch. 2 - Sosa Diet Supplements had earnings after taxes of...Ch. 2 - a. Swank Clothiers had sales of $383,000 and cost...Ch. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Given the following information, prepare an income...Ch. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prepare an income statement for Virginia Slim...Ch. 2 - Prob. 10PCh. 2 - Stein Books Inc. sold 1,900 finance textbooks for...Ch. 2 - Lemon Auto Wholesalers had sales of $1,000,000...Ch. 2 - Prob. 13PCh. 2 - Fill in the blank spaces with categories 1 through...Ch. 2 - Arrange the following items in proper balance...Ch. 2 - Elite Trailer Parks has an operating profit of...Ch. 2 - Quantum Technology had $669,000 of retained...Ch. 2 - Botox Facial Care had earnings after taxes of...Ch. 2 - Stilley Corporation had earnings after taxes of...Ch. 2 - Prob. 20PCh. 2 - The Rogers Corporation has a gross profit of...Ch. 2 - Nova Electrics anticipates cash flow from...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - For December 31, 20X1, the balance sheet of Baxter...Ch. 2 - Refer to the following financial statements for...Ch. 2 - Now click on “Balance Sheet� and compute the...Ch. 2 - Prob. 4WE
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