Now choose two highly profitable technology firms, such as Amazon (AMZN) and Microsoft (MSFT), and two electric

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Now choose two highly profitable technology firms, such as Amazon (AMZN) and Microsoft (MSFT), and two electric utilities, such as American Electric Power (AEP) and Duke Energy (DUK). Which firms have the higher ratio of market value to book value of equity? Does this make sense to you? Which firms pay out a higher fraction of their profits as dividends to shareholders? Does this make sense?

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Fundamentals Of Corporate Finance

ISBN: 9781264101566

11th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus

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