You are a financial manager for A Corporation. The CEO of the firm asked you to calculate earnings per share, price earnings ratio, and return on equity. The firm currently has 1,100,000 shares of common stock outstanding. The net income for year ending December 31, 2021 is $1,200,000. The market price of the share is $3.35. The company used a debt-equity ratio of 0.42 and return on assets for year 2021 is 2.95%. Based on the given information, what is the earnings per share, price earnings ratio, and return on equity?

i) Earnings per share (EPS)

ii) Price earning (P/E) ratio

iii) Return on equity

Answer rating: 100% (QA)

i Earnings per share EPS EPS is the portion of a companys profit allocated to each outstanding share ... View the full answer