Don't understand how to get part C. Percentage increases. Please explain in detail
Posted: Tue Jan 18, 2022 1:02 pm
Don't understand how to get part C. Percentage increases.
Please explain in detail
Botox Facial Care had earnings after taxes of $336,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $95.60. In 20X2, earnings after taxes increased to $408,000 with the same 200,000 shares outstanding. The stock price was $104.00. 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.) $ 1.68 Earnings per share P/E ratio 56.90 times 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.) $ 2.04 Earnings per share P/E ratio 50.98 times c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.) The stock price increased by percent while EPS increased by percent
Please explain in detail
Botox Facial Care had earnings after taxes of $336,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $95.60. In 20X2, earnings after taxes increased to $408,000 with the same 200,000 shares outstanding. The stock price was $104.00. 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.) $ 1.68 Earnings per share P/E ratio 56.90 times 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.) $ 2.04 Earnings per share P/E ratio 50.98 times c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.) The stock price increased by percent while EPS increased by percent