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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: 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". 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 priceearnings ratio and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend . Smith Co. has the price-earnings ratio of the three companies. Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $8,250,000 Preferred $5 stock, $100 par (no change during the year) 4,000,000 The net income was $1,058,000 and the declared dividends on the common stock were $82,500 for the current year. The market price of the common stock is $22.10 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places
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