question archive Percentage changes; pie ratios and investors' expectations Shown below are Gamma, Inc
Subject:AccountingPrice: Bought3
Percentage changes; pie ratios and investors' expectations Shown below are Gamma, Inc.'s earnings per share for a four-year period. along with the per-share market price of the company's stock at each year-end. The eamings in 2015 were the highest in the compaan history. l 2015 Earnings per share Percentage change ' Year-end stock price Price-oamings ration 6.1. Compute the percentage change in earnings per share in 2013. 2014, and 2015. (Place your answers in the spaces provided above.) 6.2. Compute the pie ratio of stock at the end of each at the four years. (Place your answers in the spaces provided above.) 6.3. What does the pie ratio at the end oi2015 indicate about investors' expectations of earnings per share for the coming year? Explain your reasoning.