LESSON 15-2. Analyzing an Income Statement. TERMS REVIEW. page 460. financial ratio – comparison between two items of financial information earnings per share – amount of net income after federal income tax belonging to a single share of stock
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Analyzing an Income Statement
Net Income after Fed. Income tax/Number of Shares Outs.
80,313.95 / 2500 = 32.13 Earnings per share
Market Price per share/Earnings per share
345/32.13 = 10.7 Price-Earnings Ratio