Earnings per share:
The 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:
Return on Common
Return on Common Stockholder’s Equity is the
1. Earnings per share:
To determine:
The Earnings per share for the year 2018
2. Price Earnings Ratio:
To determine:
The Price Earnings Ratio for the year 2018 is 20 Times.
3. Return on Common Stockholder’s Equity:
To determine:
The Rate of Return on Common Stockholder’s Equity for the year 2018
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Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
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