Question: Financial information for Forever 18 includes the following selected data: Required: 1. Calculate earnings per share in 2020 and 2021. Did earnings per share increase

Financial information for Forever 18 includes the following selected data:

($ in millions) 2021 2020 $ 129 $ 20 $ 308 $ Net income Dividends on preferred stock 15 Average shares outstanding Stock price 150 400 $12.02 $10.97


Required:

1. Calculate earnings per share in 2020 and 2021. Did earnings per share increase in 2021?

2. Calculate the price-earnings ratio in 2020 and 2021. In which year is the stock priced lower in relation to reported earnings?

($ in millions) 2021 2020 $ 129 $ 20 $ 308 $ Net income Dividends on preferred stock 15 Average shares outstanding Stock price 150 400 $12.02 $10.97

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