x Homework 11 xM1 work on second floor doster Employee-myBama tpx E The Universi

Question

x Homework 11 xM1 work on second floor doster Employee-myBama tpx E The University of Ala-Ar Home . JNJ Apparel P Pandora Internet Ra N Netflix e) LIKEtoKNowit·UABox B Apps 8.00 points Phelps, Inc. had assets of $125,140, liabilises of $25,972, and 17,722 shares of outstanding common stock at December 31, 2015. Net income for 2015 was $13,114. The company had assets of $146,857, liabilities of $31,165, 12,91 31,2016. Net income for 2016 was $12,050. 3 shares of outstanding, and its stock was trading at a price of $10 per share at December Required: a. Calculate EPS for 2016.(Do not round intermediate calculations. Round your final answer to decimal places) b. Caloulate ROE for 2016.(Round your answer to 1 decimal place.) c. Caloulate the Price/Eamings Ratio for 2016. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) References

Explanation / Answer

Answer to part b

EPS = Net income/ Average Outstanding Shares

= 12050/ 12913

= .93

Aswer to part b

Answer to part c

Price earning ratio = Price/ Earnings

= 10/.933168125

= 10.72

Return on equity = Net Income/Average stock holders equity 12050/153175 7.90% W.Note Average Stock holder equity = (Beginning Stock holder equity+ Ending Stock holder equity)/2 (177220+ 129130)/2 153175

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