a. Calculate the price-earnings ratio in 2023 and 2024. b. In which year is the stock priced lower in relation to reported earnings?

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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Please read and answer the questions 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:
(S in millions)
2024
2023
$182
$29
$279
$24
Net income
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.
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
Transcribed Image Text:Required information (The following information applies to the questions displayed below.) Financial information for Forever 18 includes the following selected data: (S in millions) 2024 2023 $182 $29 $279 $24 Net income 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. 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
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 earmings?
< 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 earmings? < Req 2a Req 2b
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Is the market price per share Net income Less Preferred Dividends

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