I need help

I need help

1)What is the difference between Earnings per Share and P/E ratio?What do they measure?

Here is some recent financial data for a number of companies (as of April 2019).Net Income and # of shares outstanding are in thousands.

Annual Net Income# shares outstanding Stock price per share

L Brands (LB) $983,000277,200 $25.18

Lululemon (LULU) $302,570122,680$172.27

Louis Vuitton (MC.PA) Paris exchange $5,130,000502,480$352.15

Steven Madden (SHOO) $126,46058,460$33.22

Destination Maternity (DEST) -$14,00014,350$2.13

American Clothing Company (PVH) $746,40075,150$131.72

2)For each of the above companies: Compute

• a) earnings per share
• b) the P/E ratio.

3)As you answer these questions keep in mind that stock value (price) can be thought of as a function of profit, growth opportunities and risk.Answers should identify which of those 3 factors seems prominent in the determination of the price of a stock.When I ask "how can you tell" I am looking for you to identify a piece of data on which you have based your answer.All of these can be answered in a few lines.

• a)Look at Louis Vuitton and Steven Madden.What is it that makes Louis Vuitton stock sell at over $352 a share while SHOO sells for over $33 a share?Is it profit?Growth potential?Risk?How can you tell?
• b)Look at L Brands and LULU.Is it profit, growth potential or risk that is the main reason why a share of L Brands stock costs about $25 while LULU stock is worth $172 a share?How can you tell?
• c)Which stock should you avoid at all costs? Why?
• d)If you were given a choice of investing your money into one of the companies above, who would it be?Why did you choose that company? Growth, Earnings, both?

Review XYZ Company Debt 725 Total Assets 1365 Inventory 375 Current Assets 900 Current Liabilities 500 Total Equity 1500 Cost of Goods Sold 1150 Sales 1200 Operating Profit 330 Taxes 150 Use the above chart to calculate the following 4) Quick Ratio 5) Current Ratio 6) Inventory Turnover 7) Debt Ratio 8) Total Asset Turnover