Final answer:
Earnings per share (EPS) is calculated by dividing net income by the average number of shares outstanding. To determine if EPS increased in 2024, compare the EPS from 2023 to 2024. If 2024's EPS is higher, then it increased; otherwise, it did not.
The correct option is b.
Step-by-step explanation:
To calculate earnings per share (EPS) for a company, you will need to know two pieces of information for each year: the net income of the company and the average number of shares outstanding. The formula for EPS is:
Earnings Per Share (EPS) = Net Income / Average Shares Outstanding
Without the actual figures for net income and average shares outstanding in 2023 and 2024, it is impossible to calculate the exact EPS for those years. However, once you have those numbers, simply apply them to the formula above for each year to find the EPS.
As for whether the earnings per share increased in 2024, you would compare the EPS from 2023 to that of 2024. If the EPS in 2024 is higher than in 2023, then it can be concluded that earnings per share increased in 2024 (True). If the EPS in 2024 is the same or lower than in 2023, then the EPS did not increase (False).
The correct option is b.
Your complete question is: Required information [The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data: Required: 1-a. Calculate earnings per share in 2023 and 2024. 1-b. Did earnings per share increase in 2024 ? Complete this question by entering your answers in the tabs below. Calculate earnings per share in 2023 and 2024. (Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).) Required information [The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data: 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings? Complete this question by entering your answers in the tabs below. Calculate the price-earnings ratio in 2023 and 2024. (Enter your price-earnings ratio values to two decimal places. Enter your answers in millions (i.e. 5,550,000 should be entered as 5.55).)