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Question 5.20 -Earnings per Share Earnings per share means the part of a company's earnings, net of taxes and preferred stock dividends, allotted to...

Question 5.20 -Earnings per Share

Earnings per share means the part of a company's earnings, net of taxes and preferred stock dividends, allotted to each share of common stock.  It is a widely used barometer to measure a company's profitability per share of common stock.  Historically, the Earnings Per Share has played a significant role in determining the market price for stocks.   A company's earnings can change suddenly for many reasons including manipulation, accounting changes, and restatements. For this and many other reasons, the earnings per share is not an absolute determinate of the market value for a company's shares.


Enter the amounts, for all three periods, for the Earnings Per Share from your company's Income Statement. 

Enter the amounts in dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Describe the trend direction for the Earnings Per Share. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant?  

Last, in your opinion, explain why the Price/Earnings Ratio for your company's stock is or is not adequate for its future.


Question 5.20 - Earnings per Share

Accounts

a= Current Yr

b= Previous Yr

c= Next Previous Yr

d= Industry Ratio

A

Earnings Per Share

a= $ 0.29

b= $ 1.51

c= $1.69

d= $ 1.16

B

Why is or is not the Earnings Per Share adequate for your company's stock?

C

Earnings Per Share trend description

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