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The following financial data was reported for banks that trade on the Australian Securities Exchange. It was compiled at the close of business on Friday
The following financial data was reported for banks that trade on the Australian Securities Exchange. It was compiled at the close of business on Friday 13 April 2007, and was obtained from the Australian Financial Review website at: http: //www.afr.com/home/sharetables/weekly/2007/4/13/CCsswk070413.csv, on 17 April 2007. Compute the measured P/E ratios for these banks and consider reasons why they might differ. Do they indicate the Home Building Society and the Rock Building Permanent are the most risky banks, while the ANZ Banking Group and Westpac Banking are the least risky banks? Can companies have negative P/E ratios and positive dividend yields? If so, explain why this happens
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