General Accounting Skyway Industries has a current net income of $4.5 million and2 million common shares outstanding which are trading at $30per share. The company is planning to issue additional stock toraise $6,000,000 for facility expansion.Calculate Skyway's current EPS and PE ratios.

Step 1: Define EPS and PE RatioEarnings Per Share (EPS): EPS is calculated by dividing the…

Answered: Skyway Industries has a current net…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Skyway Industries has a current net income of $4.5 million and 2 million common shares outstanding which are trading at $30 per share. The company is planning to issue additional stock to raise $6,000,000 for facility expansion. Calculate Skyway's current EPS and PE ratios.