Problemstilley corporation had earnings after taxes of, Ask an Expert

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Problem:

Stilley Corporation had earnings after taxes of $436,000 in 2013 with 200,000 shares outstanding. The stock price was $42.00. In 2014, earnings after taxes declined to $206,000 with the same 200,000 shares outstanding. The stock prices declined to $27.80

Required:

Question 1: Compute earnings per share and the P/E ration for 2013

Question 2: Compute the earnings per share and P/E ratio for 2014

Question 3: Give a general explanation of why the P/E changed.

Explain in detail and also show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147309

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