Question: Using the information for Sarot, Inc., in SE 4, SE 5, and SE 9, compute the price/earnings (P/E) ratio dividends yield for 2011 and 2012.

Using the information for Sarot, Inc., in SE 4, SE 5, and SE 9, compute the price/earnings (P/E) ratio dividends yield for 2011 and 2012. The company had 20,000 shares of common stock outstanding in both years. The price of Sarot's common stock was $60 in 2011 and $40 in 2012. Comment on the results(Round computations to one demical place.)

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