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The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Earnings Dividends Price
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Earnings Dividends Price per Share per Share Jones Co. $18.12 $0.60 $0.53 Smith Co. 155.31 3.10 2.64 Tucker Co. 73.10 4.30 3.00 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. 30.2 3.2 X % > Smith Co. 50.1 2.9 X % Tucker Co. 17 4.1 % b. Explain the differences in these ratios across the three companies by completing the following: Tucker Co. has the lowest price-earnings ratio, Jones Co, has both a high dividend yield and price-earnings ratio and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Smith Co. has the highest price- earnings ratio of the three companies
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