This case focuses on the following student learning objectives in this module as it relates to the course objectives (CO) described under the Getting Started - About This Course page:

Explain the role of stock in financing a corporation.	CO1
Explain and analyze common stock transactions.	CO2, CO3
Explain and analyze cash dividends, stock dividends, and stock split transactions.	CO2, CO3
Describe the characteristics of preferred stock and analyze transactions affecting preferred stock.	CO2, CO3
Analyze the earnings per share, return on equity, and price/earnings ratios.	CO1

Consider and respond to the following.

1. What is the earnings per share formula

2. What can it tell you?

3. What does a higher and a lower ratio tell you?