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    Earnings per Share & P/E Ratio

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    Nanotech Inc. had earnings after taxes of $380,000 in 2007 with 300,000 shares of stock outstanding. The stock price was $40.80. In 2008, earnings after taxes increased to $420,000 with the same 300,000 shares outstanding. The stock price was $50.00.

    - Compute earnings per share and the P/E ratio for 2007. The P/E ratio equals the stock price divided by the earnings per share.

    - Compute earnings per share and the P/E ratio for 2008.

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    https://brainmass.com/business/price-to-earnings-ratio/earnings-per-share-pe-ratio-222451

    Solution Summary

    The solution explains how to calculate the earnings per share and the P/E ratio

    $2.19