00:01
All right, here we have this concord corporation who has a net income of $255 ,000.
00:06
They pay dividends to their stockholders, $3 ,500, blah, blah, blah, blah, blah.
00:11
What we need here is the price -earnings ratio.
00:14
So the price -earnings ratio, that's what we're looking for.
00:19
So let's just cut to the chase and get to what we need to get to.
00:22
The price -earnings ratio.
00:24
Well, we have two steps here that we need to do.
00:26
The first step is to get what we call the eps.
00:31
The eps is the earnings per share.
00:35
So we just need to divide the income by the average number of shares outstanding.
00:41
So we're going to say, okay, divide the net income by the weighted average shares outstanding.
00:51
So the weighted average shares outstanding.
00:55
So that's going to be $255 ,000.
00:58
That's how much they made, $255 ,000.
01:00
And how many shares do they have? 42 ,500...