Ford Motor Company is one of the world€™s largest automobile manufacturing companies. The following data were taken from the company€™s 2013 annual report:

Required
a. Compute Ford€™s price-earnings ratio for March 3, 2014, and March 1, 2013.
b. Did the financial markets appear to be more optimistic about Ford€™s future performance on March 3, 2014, or March 3, 2013?
c. Based on the information provided, estimate approximately how many shares of stock Ford had outstanding as of December 31, 2013.

Transcribed Image Text:

Fiscal Years Ending December 31, 3, 2013 2012 $7,155 1.82 $5,665 $1.48 Net earnings (in millions) Earnings per share The following data were taken from public stock-price quotes: Stock price per share on March 3, 2014 $15.20 Two months after the end of Ford's 2013 fiscal year.) Stock price per share on March 1, 2013 $12.61 (Two months after the end of Ford's 2012 fiscal year)