(Equity analysis ratios) Two companies in the transportation industry had the following information:

		Company 1		Company 2
Basic earnings per share		$0.94		$0.71
Market price per share		$12.93		$24.93
Dividends per share		$0.476		$0.568
Cash flows from operating activities ($ thousands)		$62,223		$215,123
Net capital expenditures ($ thousands)		$6,702		$68,006

Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.)

		Company 1		Company 2
Price-earnings ratio		Enter a number of times rounded to 1 decimal place. times		Enter a number of times rounded to 1 decimal place. times

eTextbook and Media

Question Part Score

--/25

Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout ratio to 1 decimal place, e.g. 18.4% and Dividend yield to 2 decimal place, e.g. 13.61%.)

		Company 1		Company 2
Dividend payout ratio		Enter percentages rounded to 1 decimal place. %		Enter percentages rounded to 1 decimal place. %
Dividend yield		Enter percentages rounded to 2 decimal place. %		Enter percentages rounded to 2 decimal place. %

eTextbook and Media

Question Part Score

--/50

Determine the net free cash flows of both companies.

		Company 1		Company 2
Net free cash flows (in thousands)		$Enter a dollar amount.		$Enter a dollar amount.