Corporate Earnings & Stock Values: Importance & Calculations

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question 1 of 3

What are a company's earnings?

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1. A company had $200,000 income and 50,000 shares outstanding. How much are it's earnings per share?

2. A company's stock price is $100.00 per share and it's earnings per share is $3.33. What is it's price-to-earnings ratio?

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About This Quiz & Worksheet

The quiz/worksheet combo helps you test your understanding of corporate earnings and stock values. Make sure you can define corporate earnings and understand how to calculate earnings per share in order to do well on the quiz.

Quiz & Worksheet Goals

Take the quiz to check your familiarity with:

  • The effect on the price-to-earnings ratio when investors grow pessimistic about a company's prospects
  • Calculating stock price, earnings per share and price-to-earnings ratio in sample problems
  • Definition of a company's earnings

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on corporate earnings and stock values
  • Information recall - access the knowledge you have gained about how to calculate earnings per share
  • Interpreting information - verify that you can read information about calculating the price-to-earnings ratio and interpret it correctly

Additional Learning

If you would like to review more, use the lesson called Corporate Earnings & Stock Values: Importance & Calculations. Other topics you can review include:

  • The formulas for various calculations, like earnings per share
  • Calculating future earnings
  • Why price-to-earnings ratios matter and how to interpret them
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