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Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each): Stock
Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each):
Stock ABC | Stock XYZ | |
Stock Price | $100 | $45 |
Dividend | $2 | $1.50 |
A.) ABC pays a higher dividend, but is relatively expensive based on its Price/Earnings ratio.
B.) ABC has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio.
C.) XYZ has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio.
D.) XYZ pays a lower dividend, but is relatively cheap based on it Price/Earnings ratio.
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