The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:                                                           Price        Earnings        Dividends                                                                           per Share       per Share    Deere & Company                          $ 82.29        $ 4.98             $2.40Alphabet (Google)                          735.72           24.58              0.00The Coca-Cola Company                 44.60           1.66                1.40a. Determine the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decimal place as appropriate.b. Explain the differences in these ratios across the three companies.

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 22E
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The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:
                                                           Price        Earnings        Dividends
                                                                           per Share       per Share   

Deere & Company                          $ 82.29        $ 4.98             $2.40
Alphabet (Google)                          735.72           24.58              0.00
The Coca-Cola Company                 44.60           1.66                1.40
a. Determine the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decimal place as appropriate.
b. Explain the differences in these ratios across the three companies.

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