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:

	Price		Earnings per Share		Dividends per Share
Jones Co.	$103.53		$2.90		$2.80
Smith Co.	78.39		1.30		1.72
Tucker Co.	59.76		3.60		2.09

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.	fill in the blank 1	fill in the blank 2 %
Smith Co.	fill in the blank 3	fill in the blank 4 %
Tucker Co.	fill in the blank 5	fill in the blank 6 %

b. Explain the differences in these ratios across the three companies by completing the following: Tucker Co. has the

lowesthighest

price-earnings ratio. Jones Co. has both a

highlow

dividend yield and price-earnings ratio and is expected to produce shareholder returns through

a combination of some share price appreciation and a moderate dividendprice appreciation only

. Smith Co. has the

lowesthighest

price-earnings ratio of the three companies.