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Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent
Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Earnings per Share Dividends per Share Price Jones Co. $128.64 $4.80 $3.99 Smith Co. 74.58 1.10 1.64 Tucker Co. 35.96 2.90 1.40 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 "O". 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 lowest price-earnings ratio. Jones Co. has both a high dividend yield and price-earnings ratio and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Smith Co. has the highest price-earnings ratio of the three companies
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