E2.8 (LO 2) (Calculate ratios and Saputo Inc. for the year ended March 31 (in millions, except share price): Income available for common shareholders Weighted average number of common shares Share price 2021 $625.6 409.8 $37.79 2020 $582.8 400.3 $33.84 Instructions a. Calculate the basic earnings per share and price-earnings ratio for each year. b. Based on your calculations above, how did the company's profitability change from 2020 to 2021? c. When income rose, did the share price increase? How does this affect the price-earnings ratio? d. Do you think investors are more or less optimistic about the company's profitability in the future? 000 自
E2.8 (LO 2) (Calculate ratios and Saputo Inc. for the year ended March 31 (in millions, except share price): Income available for common shareholders Weighted average number of common shares Share price 2021 $625.6 409.8 $37.79 2020 $582.8 400.3 $33.84 Instructions a. Calculate the basic earnings per share and price-earnings ratio for each year. b. Based on your calculations above, how did the company's profitability change from 2020 to 2021? c. When income rose, did the share price increase? How does this affect the price-earnings ratio? d. Do you think investors are more or less optimistic about the company's profitability in the future? 000 自
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
Problem 1PS
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Transcribed Image Text:E2.8 (LO 2) (Calculate ratios and evaluate profitability.) The following informat
Saputo Inc. for the year ended March 31 (in millions, except share price):
Income available for common shareholders
Weighted average number of common shares
Share price
2021
$625.6
409.8
$37.79
2020
$582.8
400.3
$33.84
Instructions
a. Calculate the basic earnings per share and price-earnings ratio for each year.
b. Based on your calculations above, how did the company's profitability change from 2020 to 2021?
c. When income rose, did the share price increase? How does this affect the price-earnings ratio?
d. Do you think investors are more or less optimistic about the company's profitability in the future?
OC
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