Required information [The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2017 Net income Preferred stock dividends Average shares outstanding (in millions) Stock price $ $ 2018 120 $ 30 $ 250 $ 11.47 210 21 500 $ 10.42 Calculate the price-earnings ratio in 2017 and 2018. (Enter your answer in millions rounded to 2 decimal places (i.e.
Required information [The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2017 Net income Preferred stock dividends Average shares outstanding (in millions) Stock price $ $ 2018 120 $ 30 $ 250 $ 11.47 210 21 500 $ 10.42 Calculate the price-earnings ratio in 2017 and 2018. (Enter your answer in millions rounded to 2 decimal places (i.e.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.16E
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![!
Required information
[The following information applies to the questions displayed below.]
Financial information for Forever 18 includes the following selected data (in millions):
($ in millions)
Net income
2017
2018
Preferred stock dividends
Average shares outstanding (in millions)
Stock price
($ in millions)
Price-Earnings Ratio
$
+
LA LA
2018
120
30
250
$ 11.47
$
$
LA LA
$
2-a. Calculate the price-earnings ratio in 2017 and 2018. (Enter your answer in millions rounded to 2 decimal places (i.e.
5,550,000 should be entered as 5.55).)
2017
210
21
500
10.42
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F686efa8b-b30e-4d7a-a343-e2084ffbea38%2F62f384eb-c49e-408e-a598-d7feb72e4de5%2F0q8rm2_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Financial information for Forever 18 includes the following selected data (in millions):
($ in millions)
Net income
2017
2018
Preferred stock dividends
Average shares outstanding (in millions)
Stock price
($ in millions)
Price-Earnings Ratio
$
+
LA LA
2018
120
30
250
$ 11.47
$
$
LA LA
$
2-a. Calculate the price-earnings ratio in 2017 and 2018. (Enter your answer in millions rounded to 2 decimal places (i.e.
5,550,000 should be entered as 5.55).)
2017
210
21
500
10.42
=
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