Basic Earnings per share: The Basic Earnings per share is the amount of net income earned by each common share outstanding. The Earnings per share calculated by with help of following formula: Price Earnings Ratio: The price earnings ratio shows the relationship between price of the share and earnings per share. It is calculated with the help of following formula: The Basic earnings per share and price earnings ratio for the selected company

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Chapter 13, Problem 2BTN

To determine

Concept Introduction:

Basic Earnings per share:

The Basic Earnings per share is the amount of net income earned by each common share outstanding. The Earnings per share calculated by with help of following formula:

Price Earnings Ratio:

The price earnings ratio shows the relationship between price of the share and earnings per share. It is calculated with the help of following formula:

The Basic earnings per share and price earnings ratio for the selected company

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