1. Kristy Nguyen is trying to decide between two different stock investments, and she asks for your...

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1. Kristy Nguyen is trying to decide between two different stock investments, and she asks for your help. Information about each investment is below.

Company Price per share Annual Dividend After-Tax Income This Year Projected Earnings Next Year Number of Shares Outstanding One Source Manufacturing

$24 $0.40 $35 million $39 million 20 million shares Down South Homes

$40 $0.56 $122 million $90 million 140 million shares

a. Calculate the dividend yield for each company.

b. Calculate the earnings per share for each company.

c. Calculate the price-earnings (P/E) ratio for each company.

d. Based on this information, which company would you recommend?

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Related Book For  book-img-for-question

Personal Finance

ISBN: 9780073530697

10th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

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