Using the information for Obras, Inc., in SE4, SE5, and SE9, compute the price/earnings (P/E) ratio and

Question:

Using the information for Obras, Inc., in SE4, SE5, and SE9, compute the price/earnings (P/E) ratio and dividends yield for 20x8 and 20x9. The company had 10,000 shares of common stock outstanding in both years. The price of Obras’ common stock was $60 in 20x8 and $40 in 20x9. Comment on the results. (Round computations to one decimal place.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...