Listed here are data for five companies. These data are for the companies€™ 2013 fiscal years. The market price per share is the closing price of the companies€™ stock as of March 7, 2014. Except for market price per share, all amounts are in thousands. The shares outstanding number is the weighted-average number of shares the company used to compute basic earnings per share.

Required
a. Compute the earnings per share (EPS) for each company.
b. Compute the P/E ratio for each company.
c. Using the P/E ratios, rank the companies€™ stock in the order that the stock market appears to value the companies, from most valuable to least valuable. Identify reasons the ranking based on P/E ratios may not represent the market€™s optimism about one or two companies.
d. Compute the book value per share for each company.
e. Compare each company€™s book value per share to its market price per share. Based on the data, rank the companies from most valuable to least valuable.

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Stockholders Shares Market Company Net Earnings Equity Outstanding Price per Share Berkshire Hathaway $19,476,000 Carmax Chevron eBay Pfizer 434,284 21,423,000 2,856,000 22,003,000 $224,485,000 3,019,167 150,427,000 23,647,000 76,620,000 1,644 228,095 1,916,000 1,295,000 6,813,000 $183,772.00 48.60 115.08 59.06 32.43