Question: please show computations in detail Listed below are data for five companies, for their 2016 fiscal years. The market price per share is the closing
please show computations in detailListed below are data for five companies, for their 2016 fiscal years. The market price per share is the closing price of the companies' stock as of March 24, 2017. Except for market price per share, all amounts are in thousands. The shares outstanding number is the weighted average number of shares outstanding the company used to compute basic earnings per share. Company Net Earnings Amazon.com Berkshire Hathaway EXXonMobile PepsiCo Verizon Communications $ 2,371,000 24,074,000 7,840.000 6,323,000 13,127.000 Stockholders! Equity $ 19,285,000 286,359,000 1 73,830,000 11.199,000 24,032,000 Shares Outstanding 474,000 1,644 4,177,000 1,439,000 4,080,000 Market Price per Share $ 845.61 252 301.00 81.23 112.12 49.68 1. Compute the basic earnings per share for each company. 2. Computer the P/E ratio for each company. (The P/E (price-earnings ratio) is the most commonly reported measure of a company's value. The P/E ratio is the company's market price per share of stock divided by the company's earnings per share, 3. Using the companies' P/E ratios. Rank the companies' stock in the order that the stock market appears to value the companies, from the most valuable to least valuable. Explain your rankings. Explain why rankings based on P/E ratios may not represent the market's optimism for some companies
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