cSecure https/ Exam 6 C 11812 Help Phelps, Inc. had assets of $101,466, liabilit

Question

cSecure https/ Exam 6 C 11812 Help Phelps, Inc. had assets of $101,466, liabilities of $21,646, and 14,838 shares of outstanding common stock at December 31, 2017 Net income for 2017 was $10.980. The company had assets of $119,151, liabilities of $25,971, 12.031 shares of outstanding common stock and its stock was trading at e price of $10 per share at December 31, 2018 Net income for 2018 was $11.203. b. Celculate ROE for 2018 c. Calculate the Price Earnings Ratio for 2018 Complete this question by entering your answers in the tabs below. 22 of 22

Explanation / Answer

a. EPS for 2018

EPS= Earnings available to Common stockholders / Total No.of common stocks

=11203/12031

=.931

b.ROE for 2018

ROE = Net income / Share holders equity

=11203/(119151-25971)

=11,203/93,180

=12%

c, PE Ratio for 2018

PE Ratio = MPS / EPS

=10/.931

=10.74

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