Look in a recent issue of The Wall Street Journal at NYSE-Composite Transactions. a. What is the

Question:

Look in a recent issue of The Wall Street Journal at “NYSE-Composite Transactions.”

a. What is the latest price of IBM stock?

b. What are the annual dividend payment and the dividend yield on IBM stock?

c. What would the yield be if IBM changed its yearly dividend to $1.50?

d. What is the P/E on IBM stock?

e. Use the P/E to calculate IBM’s earnings per share.

f. Is IBM’s P/E higher or lower than that of Exxon Mobil?

g. What are the possible reasons for the difference in P/E?

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