Financial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 Net income $160 $171 Dividends on preferred stock $22 $17 Average shares outstanding 250 300 Stock price $11.92 $10.87 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings?
Financial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 Net income $160 $171 Dividends on preferred stock $22 $17 Average shares outstanding 250 300 Stock price $11.92 $10.87 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Financial information for Forever 18 includes the following selected data:
| ($ in millions) | 2024 | 2023 |
|---|---|---|
| Net income | $160 | $171 |
| Dividends on |
$22 | $17 |
| Average shares outstanding | 250 | 300 |
| Stock price | $11.92 | $10.87 |
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?
Transcribed Image Text:Req 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
Req 2a
Req 2b
II
II
Transcribed Image Text: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 earnings?
Req 2a
Req 2b
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