Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please clearly show step-by-step calculations and

Please clearly show step-by-step calculations and logic and technique applied in arriving at answer. ...

90.2K

Verified Solution

Question

Accounting

image

Please clearly show step-by-step calculations and logic and technique applied in arriving at answer.

18. Price-earnings ratio (LO2-2) Botox Facial Care had earnings after taxes of $370,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $31.50. In 20X2, earnings after taxes increased to $436,000 with the same 200,000 shares outstanding. The stock price was $42.00 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. b. Compute earnings per share and the P/E ratio for 20X2. Give a general explanation of why the P/E ratio changed. C

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

A note is due in 7 years, with interest of 10% compounded semiannually. The face...

Chemistry
1.2K views

Consider a solution that is 1.5×10−2 M in Ba2+ and 1.9×10−2 M in Ca2+. What minimum concentration...

Physics
1.2K views

38 Ac CCIO Sv Find the PD across R 38 Find the impedance of the...

Physics
1.2K views

B ds 0 equation is not according to the following 3 B ds 0 35606...

Geometry
1.2K views

All changes a Two buildings building A and building B are 200 and 1000 feet...

Basic Math
1.2K views

A parabola has a vertex at (0,0). The focus of the parabola is located on...

Statistics
1.2K views

A family is going to give out candy at Halloween They have a bucket filled...

Accounting
1.2K views

Can someone explain why the answer is 750? (LOOK AT LAST PHOTO, HIGHLIGHTED NUMBER) please...

Accounting
1.2K views

suppose a stock sells for 1000 and pays no dividends. at the end of one...

Accounting
1.2K views

For a note requiring equal payments, each payment will consist of increasing amounts of principal...

Finance
1.2K views

The treasurer of XYZ Corp. knows that the company will need to borrow $100 million...

Finance
1.2K views

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations...