Item                                                                Henry company                        Mayer Services Earnings available for common stock                      $225,000                  $50,00           Number of shares of common stock outstanding        $90,000             $15,000 Market price per share                                                       $45                           $50    B. Calculate the earnings per share (EPS) and price/earnings (P/E) ratio for           each company?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 11BE
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Item                                                                Henry company                        Mayer Services

Earnings available for common stock                      $225,000                  $50,00          

Number of shares of common stock outstanding        $90,000             $15,000

Market price per share                                                       $45                           $50 

 

B. Calculate the earnings per share (EPS) and price/earnings (P/E) ratio for           each company?

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