Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following financial information (in millions except for per share amounts) is for two major corporations for the three fiscal years ended December 31 as
The following financial information (in millions except for per share amounts) is for two major corporations for the three fiscal years ended December 31 as follows:
Canadian Pacific Railway Limited | 2017 | 2016 | 2015 | ||||||
Weighted average number of common shares | 145.9 | 149.6 | 159.7 | ||||||
Profit | $2,405 | $1,599 | $1,352 | ||||||
Dividends | $319 | $274 | $221 | ||||||
Market price per share (December 31) | $229.66 | $191.56 | $176.73 |
Canadian National Railway Company | 2017 | 2016 | 2015 | ||||||
Weighted average number of common shares | 753.6 | 776.0 | 800.7 | ||||||
Profit | $5,484 | $3,640 | $3,538 | ||||||
Dividends | $1,239 | $1,159 | $996 | ||||||
Market price per share (December 31) | $103.65 | $90.36 | $77.35 |
Neither company has preferred shares issued. (a1) Calculate earnings per share and the price-earnings and dividend payout ratios for each company for 2017, 2016, and 2015. (Round earnings per share and price-earnings ratio answers to 2 decimal places, e.g. 52.76. Round payout ratio answers to 3 decimal places, e.g. 5.276.)
Canadian Pacific Railway Limited | |||||||||
Ratio | 2017 | 2016 | 2015 | ||||||
1. Earnings per share | $ | $ | $ | ||||||
2. Price-earnings ratio | times | times | times | ||||||
3. Payout ratio |
Canadian National Railway Company | |||||||||
Ratio | 2017 | 2016 | 2015 | ||||||
1. Earnings per share | $ | $ | $ | ||||||
2. Price-earnings ratio | times | times | times | ||||||
3. Payout ratio |
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