1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
3 years ago
14

Botox Facial Care had earnings after taxes of $340,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $74

.80. In 20X2, earnings after taxes increased to $378,000 with the same 200,000 shares outstanding. The stock price was $83.00.
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.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
Business
1 answer:
scoundrel [369]3 years ago
3 0

Answer:

$1.7; 44 times

Explanation:

a) EPS(20X1):

= Earnings after taxes / Number of shares

= $340,000 / 200,000

= $1.7

P/E ratio(20X1):

= Price / EPS

= $74.80 / $1.7

= 44 times

EPS(20X2):

= Earnings after taxes / Number of shares

= $378,000 / 200,000

= $1.89

P/E ratio(20X2):

= Price / EPS

= $83.00 / $1.89

= 43.92 times

You might be interested in
Do you think most employers are serious about the development of their employees or are they only concerned with productivity?
Mandarinka [93]

Answer:

Productivity is the phenomena of the world economies. It is important for the development and growth.

Explanation:

There are many international and national organization that take care about their employees growth. But many of organization are there which is only think about the productivity not about their employees. The industrial organization psychology worked on this concepts. Many research has been done just because to find out about the employees condition and productivity in an organization.

It is very important for employers if they think about the mental, physical health of their employees it affects the productivity. If employees are satisfied with the environment and policy of a company then productivity will also increase side by side.

3 0
3 years ago
Trevor Company expects sales of Product W to be 60,000 units in April, 75,000 units in May, and 70,000 units in June. The compan
Sedbober [7]

Answer:

65000 units

Explanation:

Given:

Expected sales of product W in April  = 60000 units

Expected sales of product W in May  = 75000 units

Expected sales of product W in June  = 70000 units

Inventory in hand at the end of each month = 40% of the next month's expected sale

Inventory expected at the end of the April = 40% of the expected sales in May

or

Inventory expected at the end of the April = 0.4 × 75000 = 30000 units

Therefore, the total units required in April =  Expected sales of product W in April + Inventory expected at the end of the April

or

the total units required in April = 60000 + 30000 = 90000 units

Now,

Excessive production in March (inventory) = 25000 units

Hence, the units required to be produced in April = the total units required in April - Excessive production in March (inventory)

or

the units required to be produced in April = 90000 - 25000 = 65000 units

7 0
3 years ago
"Financial resources are the lifeblood of any office." Justify this statement.​
dedylja [7]

Answer:

Without financial stability, and office can not function properly.

Explanation:

Ex:

unpaid light bill = dysfunctional office

5 0
3 years ago
Read 2 more answers
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Wewaii [24]

Answer:

C

Explanation:

Job Analysis is mainly related to the skills and qualifications of the person doing the job, so this would allow leadership to see if a position is over or understaffed.

3 0
2 years ago
Which one component in a high-end gaming computer is likely to draw the most power?
Harman [31]
It would most likely be the GPU.
6 0
3 years ago
Other questions:
  • Consider the following note payable transactions of Cabal Video Productions.
    7·1 answer
  • Omega locates it global manufacturing in mexico, its global distribution in honduras, and its design in germany. by dispersing d
    13·2 answers
  • Instructions:Type the correct answer in the box. Spell all words correctly.
    9·2 answers
  • PLEASE HELP ME!!
    13·1 answer
  • Which is one of the best ways to avoid credit problems​
    12·1 answer
  • Which best describes what a market index does?
    10·2 answers
  • Which of the following is true of source documents in an accounting information​ system?
    6·1 answer
  • Salespeople selling in foreign markets should tailor their presentations and closing styles to each market.​
    12·1 answer
  • A 60-year-old man develops lung cancer, and sues the manufacturer of an asbestos-containing material. The man worked in construc
    9·1 answer
  • Which of these statements are Red Flags that may signal Colleague
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!