Refer to the Data for Knife Corp

question 134

Essay

Refer to the data for Knife Corp.
EQUIRED:
A Calculate earnings per share for 2016 for Knife. Why is this considered one of the most quoted ratios for public companies? Which investors, common or preferred or both, desire this information?
B Calculate the price/earnings ratio for 2016 for Knife. Why is this ratio important to investors? Explain.

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Definitions:

Parasitic

Describes organisms that live on or in a host organism and cause harm to the host.

Scavenging

The act of consuming dead or decaying organic material, a behavior observed in some animals, bacteria, and fungi.

Ectotherm

Animal in which internal temperature is regulated by changes in behavior; for example, a fish or a lizard.

Reptiles

Cold-blooded, vertebrate animals that lay eggs and have skin covered with scales or bony plates.