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Price-Eamings Ratio; Dividend Vield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent
Price-Eamings Ratio; Dividend Vield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Earnings Dividends Price per Share per Share Jones Co. $32.16 $1.20 50.87 Smith Co. 71.06 1.10 1.35 Tucker Co 14.50 1.00 0.51 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "0". Price-Earnings Ratio Dividend Yield Jones Co. % Smith Co. Tucker Co. b. Explain the differences in these ratios across the three companies by completing the following: Tucker Co. has the price-earnings ratio. Jones Co. has both a dividend yield and price-earnings ratio and is expected to produce shareholder returns through Smith Co. has the price-earnings ratio of the three companies
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