History Bookmarks Window Help Sun 1:02 AM v2.cengagenow.com eBook Calculator Print Item Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for th ree companies for a recent year: Earnings Dividends Price per Share per Share Deere & Company $86.20 $8.71 $2.04 Google 873.32 36.75 0.00 The Coca-Cola Company 39.79 1.97 1.02 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "0" Price-Earnings Ratio Dividend Yield Deere& Company 9.90 Google 23.8 0 The Coca-Cola Company 20.20 b. Explain the differences in these ratios across the three companies by completing the following: Deere & Company has the lowest price-earnings ratio, and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Coca-Cola has both a high dividend yield and price- earnings ratio. Google pays no dividend and, thus, has no dividend yield. However, Google has the largest price-earnings ratio of the three companies. CAndhack Check My Work ( Previous Next All work saved. Save and Exit Submit Assignment for Grading JUL 1
History Bookmarks Window Help Sun 1:02 AM v2.cengagenow.com eBook Calculator Print Item Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for th ree companies for a recent year: Earnings Dividends Price per Share per Share Deere & Company $86.20 $8.71 $2.04 Google 873.32 36.75 0.00 The Coca-Cola Company 39.79 1.97 1.02 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "0" Price-Earnings Ratio Dividend Yield Deere& Company 9.90 Google 23.8 0 The Coca-Cola Company 20.20 b. Explain the differences in these ratios across the three companies by completing the following: Deere & Company has the lowest price-earnings ratio, and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Coca-Cola has both a high dividend yield and price- earnings ratio. Google pays no dividend and, thus, has no dividend yield. However, Google has the largest price-earnings ratio of the three companies. CAndhack Check My Work ( Previous Next All work saved. Save and Exit Submit Assignment for Grading JUL 1
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 21E
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