Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Two companies in the travel and tourism industry had the following information: Company A Company B Basic earnings per share $0.90 $0.80 Market price per
Two companies in the travel and tourism industry had the following information: Company A Company B Basic earnings per share $0.90 $0.80 Market price per share $48.33 $18.88 Dividends per share $0.639 $0.352 Cash flows from operating activities ($ thousands) $329,280 $90,630 Net capital expenditures ($ thousands) $106,040 $8,630 Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.) Price-earnings ratio Company A times Company B times Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout ratio to 1 decimal place, eg. 18.4% and Dividend yield to 2 decimal place, eg. 13.61%) Company A Company B % % Dividend payout ratio % % Dividend yield Determine the net free cash flows of both companies. Company A Company B $ $ Net free cash flows (in thousands)
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