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
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Horngren's Accounting, Student Value Edition (12th Edition)
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education