I have 2 different companies- I need to know what the (1) what the earnings per share for each company are, (2) the price-earnings ratio for each company, & (3) which company would you invest in? 1st company has shares that are $27 per share-annual dividend of $.45 and after tax income for this year is $42 million and projected earnings this year are $47 million & there is 25 million number of outstanding shares. 2nd company has shares that are $55 per share-annual dividend of .$65 and after tax income for this year is $135 million and projected earnings this year are $122 million & there is 135 million outstanding shares.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 64P: Albion Inc. provided the following information for its most recent year of operations. The tax rate...
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I have 2 different companies- I need to know what the (1) what the earnings per share for each company are, (2) the price-earnings ratio for each company, & (3) which company would you invest in? 1st company has shares that are $27 per share-annual dividend of $.45 and after tax income for this year is $42 million and projected earnings this year are $47 million & there is 25 million number of outstanding shares. 2nd company has shares that are $55 per share-annual dividend of .$65 and after tax income for this year is $135 million and projected earnings this year are $122 million & there is 135 million outstanding shares.

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