Question
Now pick two highly profitable tech firms: Advanced Micro Devices, Inc. (AMD) and Microsoft (MSFT), and two utilities/consumer firms: American Electric Power Co Inc. (AEP)
Now pick two highly profitable tech firms: Advanced Micro Devices, Inc. (AMD) and Microsoft (MSFT), and two utilities/consumer firms: American Electric Power Co Inc. (AEP) and 3M Co. (MMM). Look at the financial statements on Yahoo Finance and answer the questions below.
a. Which firms have the higher P/E ratios? Does this make sense to you?
b. Which firms pay out a higher fraction of their profits as dividends to shareholders? Does this make sense to you?
c. As a value stock investor, which stocks do you want to buy?
(Note: Use the quarterly financial statements to calculate the latest ratios (i.e., Q2 of 2022))
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
