Price-earnings ratio; dividend yield OBJ. 3 The table that follows shows the stock price, earnings per share,

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Price-earnings ratio; dividend yield OBJ. 3 The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:

Price Earnings per Share Dividends per Share Deere & Co. $ 86.20 $ 8.71 $2.04 Google 873.32 36.75 0.00 The Coca-Cola Company 39.79 1.97 1.02

a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place.

b. Explain the differences in these ratios across the three companies.

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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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