Botox Facial Care had earnings after taxes of $282,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $81.80. 2002, eamings after taxes increased to $418,000 with the same 200,000 shares outstanding. The stock price was $94.00. 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 Found intermediate calculations. Round your final answers to 2 decimal places.) Eamings per share PIE ratio . Compute eamings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Earings per share P/E ratio times The stock price times Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal places) percent while EPS percent.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Boston Facial Care had earnings after taxes of $282,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $81.80.
In 20X2, earnings after taxes increased to $418,000 with the same 200,000 shares outstanding. The stock price was $94.00.
6. 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
reund intermediate calculations. Round your final answers to 2 decimal places.)
Earrings per share
b. Compute eamings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2
decimal places.)
Earings per share
P/E ratio
times
The stock price
times
3. Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal
places)
percent white EPS
percent.
PLAY
Next >
Transcribed Image Text:Boston Facial Care had earnings after taxes of $282,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $81.80. In 20X2, earnings after taxes increased to $418,000 with the same 200,000 shares outstanding. The stock price was $94.00. 6. 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 reund intermediate calculations. Round your final answers to 2 decimal places.) Earrings per share b. Compute eamings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Earings per share P/E ratio times The stock price times 3. Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal places) percent white EPS percent. PLAY Next >
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