Shown below are Gamma, Incorporated's earnings per share for a four-year period, along with the...
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Shown below are Gamma, Incorporated's earnings per share for a four-year period, along with the per-share market price of the company's stock at each year-end. The earnings in Year 4 were the highest in the company's history. (A) Compute the percentage change in earnings per share in Years 2, 3, and 4. (Note: Add a minus or plus sign before each percentage to indicate whether it decreased or increased during each of the three years.) (B) Compute the p/e ratio of stock at the end of each of the four years. (C) What does the p/e ratio at the end of Year 4 indicate about investors' expectations of earnings per share for the coming year? Explain your reasoning
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Shown below are Gamma, Incorporated's earnings per share for a four-year period, along with the per-share market price of the company's stock at each year-end. The earnings in Year 4 were the highest in the company's history. (A) Compute the percentage change in earnings per share in Years 2, 3, and 4. (Note: Add a minus or plus sign before each percentage to indicate whether it decreased or increased during each of the three years.) (B) Compute the p/e ratio of stock at the end of each of the four years. (C) What does the p/e ratio at the end of Year 4 indicate about investors' expectations of earnings per share for the coming year? Explain your reasoning 
