Use the following comparative figures for Apple and Google.

Required

1. Compute the basic EPS for each company using these data.

2. Compute the dividend yield for each company using these data.

3. Compute the price-earnings ratio for each company using these data.

4. Based on the PE ratio, for which company do investors have greater expectations about future performance?

Transcribed Image Text:

Key Flgures Apple Google Net income (in millions) . $ 59,531 $ 30,736 Cash dividends declared per common share. Common shares outstanding (in millions).. 2$ 2.72 $ 0.00 4,754.986 695.556 Weighted-average common shares outstanding (in millions) 4,955.377 695.070 Market value (price) per share... $ 220.42 $1,035.61 Equity applicable to common shares (in millions). $ 107,147 $177,628