You need to answer this question by uploading an Excel file. NOTE THAT you need to use Excel formulas to make your calculations in order to earn full credit. In your answers to part b and c, use the Wrap Text option so that your answer does not run on and on across the page.

We have learned that some stocks are valued more for their profitability and others are more valued for their growth potential. In the table below, are recent data for Apple and for Facebook. I have provided EPS and stock price. Use that data as appropriate in answering these questions.

a) From the given data, calculate the P/E ratio for Apple and for Facebook. BE SURE TO LABEL EACH SO THAT I CAN SEE WHICH RATIO GOES WITH WHICH COMPANY. For full credit you must uses Excel formulas to do your calculations. I need to see your work and your formula will be your work.

EPS Stock Price

Apple $9.21 $176.94

Facebook $5.16 $177.97

b) In a second tab in your Excel workbook,select columns a through j and rows 1 through 20. Click merge cells. You should have created a large cell. Use the cell you just created in your second tab of your Excel workbook to answer this question: For which company is it more logical to assume that investors value the stock for its profitability? How can you tell? Make reference to specific data and explain your reasoning briefly. Be sure to label your answer "part b"

c) In the large cell you created in your Excel workbook, answer this question: For which company is it more logical to assume that investors value the stock for its growth potential? How can you tell? Make reference to specific data and explain your reasoning briefly. Be sure to label your answer "part c".