TRUE OR FALSE Price earnings ratio refers to the multiplier applied to earnings per share to determine current value of common stock.

Q: Why is P/E Multiples Approach better than book value per share when it comes to valuing the stocks…

A: P/E is a better approach because it uses earnings that reflect the performance of a firm.

Q: Do the Market-value ratios relate a firm's stock price to its earnings and book value per share?…

A: The market value ratios are generally used to assess the current stock price of a public listed…

Q: What is basic earnings per share (EPS)?

A: Introduction:- Basic earning per share denotes amount of net profit attributable to each common…

Q: In contrast to various discounted cash-flow techniques that attempt to estimate a specific value for…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for…

A: Treasury stock refers to previously issued stock that the issuing business buys back from…

Q: How the dividend is related to the market value of shares? [A] interest coverage ratio [B] fixed…

A:

Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on…

A: A company issues its common stock at par value or at an amount more than the par value. The amount…

Q: The PE ratio a. Measures a company’s profitability per share.b. Tends to be higher for value…

A:

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: True or False Returns from the overall market can be thought of as a combination of three factors:…

A: The operating profit of a corporation is the entire earnings from its core business tasks for a…

Q: How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and…

A: Earnings Per Share (EPS) Earning per share is an important tools of measuring the strength in the…

Q: Explain how to calculate earnings per share.

A: Earnings per share shows the profits available to each common stock shareholder after paying the…

Q: Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield…

A: Capital Gain/Loss: It refers to the change in the value of an investment made by an individual or an…

Q: What does the P/E ratio measure? A . Th e “multiple” that the stock market places on a company’s…

A: P/E ratio :

Q: What is the formula for the Debt to Earnings Ratio? (Assume Preferred Stock Dividends)

A: a. Debt to earnings Ratio - This ratio is indicates the monthly income generated to pay its…

Q: Explain the Summary of the Effect of Potential Common Shares on Earnings Per Share.

A: The companies which are listed on securities exchange are required to report the Earnings per share…

Q: Explain how holding a portion of the earnings (Plowback ratio) could increases the stock price.

A: Answer: The term plow back is used in fundamental analysis which measure to what extent earnings are…

Q: In its most basic form, the Earnings per Share (EPS) ratio is calculated as: Net income divided by…

A: EPS = earnings per share .

Q: is Diluted Earnings Per Share (EPS) an easy calculation to prepare and understand?

A: The diluted EPS calculation is a little more complex than the EPS calculation. Both are…

Q: TRUE OR FALSE? In computing earnings per share, we must interpret this in terms of the number of…

A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…

Q: How should a "gain" from the sale of treasury stock be reflected when using the cost method of…

A: ANSWER   It will be recorded as a paid-in capital from treasury stock. Although the company made a…

Q: dividend yield on Abercrombie & Fitch stock wa

A: The dividend yield on Abercrombie & Fitch stock is identified from Yield Column I,e column 13

Q: In the general dividend-valuation model, the price of a share of stock is the present value of all…

A: Current value of a share of stock is the present value of its cash flows. Cash flows, includes all…

Q: Explain the difference between expected rate of return, required rate of return, and historical rate…

A: Return Return is also referred to as the money lost or made over a specific period of time. It can…

Q: Why is earnings per share called “the bottom line”? What is EBIT, or operatingincome?

A: Earnings per share is the company’s net revenue/income that can be distributed among its…

Q: Define Diluted Earnings Per Share.

A: Earnings per share: An amount available as earnings for each of the common shares outstanding for a…

Q: What is the difference between book value per share of common stock and market value per share? Why…

A: Book Value per share: Book value per share can be calculated as follows: BVPS =   Total Equity −…

Q: What is the difference between common stock and retained earnings?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: c. How much Resulting APIC is to be charged or debited for the stock issuance cost d. How much…

A: According to IFRS 3 Business Combination, the cost incurred for issuing stock shall not be treated…

Q: TRUE OR FLASE the dividend payout ratio is the dividend by the stock price

A: Dividend payout ratio shows the portion of dividend is distributed out of net income/earnings.

Q: Stock and dividend returns can be shown in percentage, dollar, and per-share values. True or Fals

A: stocks return: these are the return that the firm gives to the equity holders.

Q: What is par value? Select one: a. The price at which a company's stock is sold b. The dollar amount…

A: To arrange the funds for the firm's requirement, firms issue various securities in the market and…

Q: The ratio of the market price per share of common stock on a specific date to the annual earnings…

A: Price earnings ratio is the ratio of market price per share with Earnings per shares. This ratio is…

Q: The dividend yield rate is equal to the dividends per share divided by the par value per share of…

A: The given statement is FALSE

Q: If the costing of the shares is based on the moving average method, the gain on the sale of the…

A: Under Moving Average Method, The Total Number of shares is divided by the Total cost of the shares…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.