Price-Earnings Ratio: Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Earnings Dividends per Share per Share Price $27.23 Jones Co. $0.70 $0.87 Smith Co. 185.89 2.90 3.53 Tucker Co. 88.20 4.50 3.70 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 Jones Co. % Smith Co. Tucker Co. b. Explain the differences in these ratios across the three Tucker Co. has the l companies by completing the following: ratio. Jones Co. has both a l price-earnings dividend yield and price-earnings ratio and is expected to price-earnings ratio of the three companies. produce shareholder returns through i Smith Co. has the l

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 22E
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Price-Earnings Ratio; Dividend Yield:
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:
Dividends
Earnings
per Share
per Share
Price
$27.23
Jones Co.
$0.70
$0.87
Smith Co.
185.89
2.90
3.53
Tucker Co.
88.20
4.50
3.70
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
Jones Co.
Smith Co.
%
Tucker Co.
%
b. Explain the differences in these ratios across the three
Tucker Co. has the
companies by completing the following:
price-earnings ratio. Jones Co. has both al
dividend yield and price-earnings ratio and is expected to
price-earnings ratio of the three companies.
Smith Co. has the
produce shareholder returns through,
Transcribed Image Text:Price-Earnings Ratio; Dividend Yield: The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Dividends Earnings per Share per Share Price $27.23 Jones Co. $0.70 $0.87 Smith Co. 185.89 2.90 3.53 Tucker Co. 88.20 4.50 3.70 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 Jones Co. Smith Co. % Tucker Co. % b. Explain the differences in these ratios across the three Tucker Co. has the companies by completing the following: price-earnings ratio. Jones Co. has both al dividend yield and price-earnings ratio and is expected to price-earnings ratio of the three companies. Smith Co. has the produce shareholder returns through,
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