Question
1) Calculate the Price to Earnings (P/E) ratio using the days current stock price and the company's (Fiscal 2019) Earnings per Share (found on Yahoo
1) Calculate the Price to Earnings (P/E) ratio using the days current stock price and the company's (Fiscal 2019) Earnings per Share (found on Yahoo Finance). Formula Below!! 2) Based on the two calculations, which one of the two companies is preferred by investors right now, and why? BIG hint: the higher the P/E ratio, the more in-favor a stock is with investors. You MUST calculate the P/E ratio yourself using that days trading prices (also found on Yahoo Finance).
Do NOT just look up the P/E ratio from Yahoo Finance or elsewhere (it will be wrong) show me how you calculated the ratio!!! Are you surprised with your results?
COMPANY LIST Amgen (AMGN) Bank of America (BAC) Caterpillar (CAT) General Electric (GE) Macy's (M) Dunkin Donuts (DNKN) Dell Computers (DELL) Hewlett- Packard (HPQ) Priceline (PCLN) Alibaba (BABA) Apple (AAPL) Amazon (AMZN) Amgen (AMGN) Caterpillar (CAT) General Electric (GE) Starbucks (SBUX)
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