Company A has a price-earnings ratio of 10 times and a payout ratio of 4%. Company B

Question:

Company A has a price-earnings ratio of 10 times and a payout ratio of 4%. Company B has a price-earnings ratio of 40 times and a payout ratio of 0%.
(a) Which company's shares would be of more interest to an investor wanting a steady income?
(b) Which company's shares would be of more interest to an investor wanting to sell her shares for a profit?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...