If EAT =200 preferred stock dividend is 180 common stocks outstanding is 10 then

Question

If EAT =200 preferred stock dividend is 180 common stocks outstanding is 10 then EPS= 2 True or false??
If the p/e ration of a stock is $18 then a stock buyer is paying $18 to purchase 1$ worth of current year earnings True or false? If EAT =200 preferred stock dividend is 180 common stocks outstanding is 10 then EPS= 2 True or false??
If the p/e ration of a stock is $18 then a stock buyer is paying $18 to purchase 1$ worth of current year earnings True or false? True or false??
If the p/e ration of a stock is $18 then a stock buyer is paying $18 to purchase 1$ worth of current year earnings True or false?

Explanation / Answer

1)

EAT or EARNINGS AFTER TAX =200

EPS=(200-180)/10=2

so the answer is True

2)

True

so because P/Emeans price to earnings

so 18 times mean the $18 for $1 for current year earnings.

The above should be the answers..

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