2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings? Complete this question hy entering vour answers in the tahs below

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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There are 2 parts to this question please read and answer carefully using the table provided.

Required Information
(The following information applies to the questions displayed below.)
Financial information for Forever 18 includes the following selected data:
($ in millions)
2024
2023
$279
$24
Net income
$182
$29
Dividends on preferred stock
Average shares outstanding
Stock price
260
450
$11.72
$10.67
2-a. Calculate the price-earnings ratio in 2023 and 2024.
2-b. In which year is the stock priced lower in relation to reported earnings?
Complete this question by entering your answers in the tabs below.
Reg 2a
Req 2b
Calculate the price-earnings ratio in 2023 and 2024. (Enter your price-earnings ratio values to two decimal places. Enter your
answers in millions (i.e. 5,550,000 should be entered as 5.55).)
Price-Earnings Ratio
Numerator/Denominator
Amounts
2023
2024
Transcribed Image Text:Required Information (The following information applies to the questions displayed below.) Financial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 $279 $24 Net income $182 $29 Dividends on preferred stock Average shares outstanding Stock price 260 450 $11.72 $10.67 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings? Complete this question by entering your answers in the tabs below. Reg 2a Req 2b Calculate the price-earnings ratio in 2023 and 2024. (Enter your price-earnings ratio values to two decimal places. Enter your answers in millions (i.e. 5,550,000 should be entered as 5.55).) Price-Earnings Ratio Numerator/Denominator Amounts 2023 2024
2-a. Calculate the price-earnings ratio in 2023 and 2024.
2-b. In which year is the stock priced lower in relation to reported earnings?
Complete this question by entering your answers in the tabs below.
Req 2a
Req 2b
In which year is the stock priced lower in relation to reported earnings?
In which year is the stock priced lower in relation to reported eamings?
< Req 2a
Req 2b >
Transcribed Image Text:2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings? Complete this question by entering your answers in the tabs below. Req 2a Req 2b In which year is the stock priced lower in relation to reported earnings? In which year is the stock priced lower in relation to reported eamings? < Req 2a Req 2b >
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