Financial information for Forever 18 includes the following selected data (in millions)
($ In millions)
2015
2014
Net Income
171
201
Dividends on preferred stock
21
16
Average shares outstanding (In millions)
228
300
Stock price
11.97
10.92
Required:
1-a. Calculate earnings per share in 2014 and 2015. (Enter you answers in millions.)
1-b. Did earnings per share increase in 2015?
· No
· Yes
2-a. Calculate the price-earnings ratio in 2015 and 2015. (Enter your answer in millions. Round your answers to 2 decimal places.)
2-b. In which year is the stock period lower in relations to reported earnings?
· 2014
· 2015
