Wilson, Inc., has a current stock price of $46.00. For the past year, the company had net income of $6,800,000, total equity of $21,690,000, sales of $40,100,000, and 5.2 million shares of stock outstanding.

1. What are eamings per share (EPS) ? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g. 32.16.)

2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Question

Business

Jagger

24 April, 07:27

Wilson, Inc., has a current stock price of $46.00. For the past year, the company had net income of $6,800,000, total equity of $21,690,000, sales of $40,100,000, and 5.2 million shares of stock outstanding.

1. What are eamings per share (EPS) ? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g. 32.16.)

2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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Answers (1)

Know the Answer?

Bridget Trevino · Answer 1

1. What are eamings per share (EPS) ? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g. 32.16.)

Answer: $ 1.31 / share

2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Answer: 35.11

Explanation:

Earning Per Share (EPS) = Net Income - Preferred dividends / Outstanding Number of Share

Earning Per Share (EPS) = $6,800,000 - 0 / 5,200,000 shares

Earning Per Share (EPS) = $6,800,000 / 5,200,000 shares

Earning Per Share (EPS) = $1.31 / share

Price earning ratio = Share price / Earning per share

Price earning ratio = $46 per share / $1.31 per share

Price earning ratio = $46 / $1.31

Price earning ratio = 35.11