Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q.1 The following information is related to PQR company and XYZ company for the year 2013: POR Company XYZ Company Cash dividend declared and paid
Q.1 The following information is related to PQR company and XYZ company for the year 2013: POR Company XYZ Company Cash dividend declared and paid during $750,000 $124,800 the year Common stock $25,000,000 $12,000,000 Number of shares of common stock 50,000 24,000 outstanding Par value of a share $50 $50 Market value of a share $60 $52 Both the companies belong to same industry. PQR is an old and well-established company where as XYZ is a new company. The historical data shows that the PQR has a stable annual dividend distribution to stockholders. Required: Calculate dividend yield ratio of both the companies. Which company would you recommend for investment in shares? Explain with reasons
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started