Botox Facial Care had earnings after taxes of $370,000 in 2012 with 200,000 shares of stock outstanding.
Question:
Botox Facial Care had earnings after taxes of $370,000 in 2012 with 200,000 shares of stock outstanding. The stock price was $31.50. In 2013, earnings after taxes increased to $436,000 with the same 200,000 shares outstanding. The stock price was $42.00.
a. Compute earnings per share and the P/E ratio for 2012. (The P/E ratio equals the stock price divided by earnings per share.)
b. Compute earnings per share and the P/E ratio for 2013.
c. Give a general explanation of why the P/E ratio changed.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a b c The stock price increa...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
3+ Reviews
10+ Question Solved
Related Book For 
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Question Posted:
