are dată for five companies. These data are for the companies' 2019 fiscal years. The market price per share is the closing price of the companies' stock the day after they announced their 2019 earnings. Except for market price per share, all amounts are in millions. The shares outstanding number is the weighted average number of shares the company used to compute basic earnings per share. Note that the numbers for Mountainview Investments are significantly different that the other companies. For example, the number for its shares outstanding includes a decimal, not a comma. Its shares outstanding are about are 1.6 million, not 1.6 billion. Company Nile.com Mountainview Investments. Big Oil Soda Fizz Incorporated Ringer Corporation Net Earnings $12,495 82,355 15,280 8,255 6,088 Stockholders Shares Market Price Equity Outstanding per Share $62,998 1,415 $2,006.00 429,386 199,674 15,748 63,939 1.652 4,840 2,165 5,072 d. Compute the book value per share for each company. e-1. Compute the ratio of Market Value to Book Value of each company. e-2. Based on the data, rank the companies from most valuable to least un 333,949 62.53 148.79 60.31 Required a. Compute the earnings per share (EPS) for each company. b. Compute the P/E ratio for each company. c. Using the P/E ratios, rank the companies' stock in the order that the stock market appears to value the companies, from most valuable to least valuable.
are dată for five companies. These data are for the companies' 2019 fiscal years. The market price per share is the closing price of the companies' stock the day after they announced their 2019 earnings. Except for market price per share, all amounts are in millions. The shares outstanding number is the weighted average number of shares the company used to compute basic earnings per share. Note that the numbers for Mountainview Investments are significantly different that the other companies. For example, the number for its shares outstanding includes a decimal, not a comma. Its shares outstanding are about are 1.6 million, not 1.6 billion. Company Nile.com Mountainview Investments. Big Oil Soda Fizz Incorporated Ringer Corporation Net Earnings $12,495 82,355 15,280 8,255 6,088 Stockholders Shares Market Price Equity Outstanding per Share $62,998 1,415 $2,006.00 429,386 199,674 15,748 63,939 1.652 4,840 2,165 5,072 d. Compute the book value per share for each company. e-1. Compute the ratio of Market Value to Book Value of each company. e-2. Based on the data, rank the companies from most valuable to least un 333,949 62.53 148.79 60.31 Required a. Compute the earnings per share (EPS) for each company. b. Compute the P/E ratio for each company. c. Using the P/E ratios, rank the companies' stock in the order that the stock market appears to value the companies, from most valuable to least valuable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Listed here are data for five companies. These data are for the companies' 2019 fiscal years. The market price per
share is the closing price of the companies' stock the day after they announced their 2019 earnings. Except for market
price per share, all amounts are in millions. The shares outstanding number is the weighted-average number of shares
the company used to compute basic earnings per share. Note that the numbers for Mountainview Investments are
significantly different that the other companies. For example, the number for its shares outstanding includes a decimal,
not a comma. Its shares outstanding are about are 1.6 million, not 1.6 billion.
Company
Nile.com
Mountainview Investments
Big Oil
Soda Fizz Incorporated
Ringer Corporation
Net
Earnings
$12,495
82,355
15,280
8,255
6,088
Company
Stockholders' Shares Market Price
Equity Outstanding per Share
$62,998
1,415
$2,006.00
429,386
1.652
Nile.com
Mountainview Investments
Big Oil
Soda Fizz Incorporated
Ringer Corporation
199,674
15,748
63,939
Required
a. Compute the earnings per share (EPS) for each company.
b. Compute the P/E ratio for each company.
c. Using the P/E ratios, rank the companies' stock in the order that the stock market appears to value the companies,
from most valuable to least valuable.
4,840
2,165
5,072
d. Compute the book value per share for each company.
e-1. Compute the ratio of Market Value to Book Value of each company.
e-2. Based on the data, rank the companies from most valuable to least valuable. (The higher the ratio of market value
to book value, the greater the value the stock market appears to be assigning to a company's stock.)
(For all the requirements, round your intermediate calculations and final answers to 2 decimal places.)
a.
b.
C.
EPS P/E Ratio Ranking
333,949
62.53
148.79
60.31
d. Book
Value per
Share
e1. Ratio of
Market
Value to
Book Value
e2.
Ranking
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education