Question
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: Price Earnings per
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:
Price | Earnings per Share | Dividends per Share | ||||
Deere & Co. | $86.20 | $8.71 | $2.04 | |||
873.32 | 36.75 | 0.00 | ||||
The Coca-Cola Company | 39.79 | 1.97 | 1.02 |
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 | |
Deere & Co. | % | |
% | ||
The Coca-Cola Company | % |
b. Explain the differences in these ratios across the three companies by completing the following: Deere & Co. has the price-earnings ratio, and is expected to produce shareholder returns through . Coca-Cola has both a dividend yield and price-earnings ratio. Google pays dividend and, thus, has dividend yield. However, Google has the price-earnings ratio of the three companies.
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