Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following comparative figures for Apple and Google. Key Figures Apple Google Net income (in millions) $ 55, 256 $ 34,343 Cash dividends declared
Use the following comparative figures for Apple and Google. Key Figures Apple Google Net income (in millions) $ 55, 256 $ 34,343 Cash dividends declared per common share $ 3.00 $ - Common shares outstanding (in millions) 4,443.236 688.335 Weighted average common shares outstanding (in millions) 4,617.834 692.539 Market value (price) per share $ 293.65 $ 1,339.39 Equity applicable to common shares (in millions) $ 90,488 $ 201,442 Required: 1. Compute the basic earnings per share (EPS) for each company using these data. 2. Compute the dividend yield for each company using these data. 3. Compute the price-earnings ratio for each company using these data. 4. Based on the price-earnings (PE) ratio, for which company do investors have greater expectations about future performance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the basic EPS for each company using these data. (Round your answers to 2 decimal places.) Basic EPS Apple Google Required: 1. Compute the basic earnings per share (EPS) for each company using these data. 2. Compute the dividend yield for each company using these data. 3. Compute the price-earnings ratio for each company using these data. 4. Based on the price-earnings (PE) ratio, for which company do investors have greater expectations about future performance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the dividend yield for each company using these data. (Round your percentage answers to 2 decimal places.) Apple Google Dividend Yield % % Required: 1. Compute the basic earnings per share (EPS) for each company using these data. 2. Compute the dividend yield for each company using these data. 3. Compute the price-earnings ratio for each company using these data. 4. Based on the price-earnings (PE) ratio, for which company do investors have greater expectations about future performance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the price-earnings ratio for each company using these data. (Round your answers to 2 decimal places.) Price-Earnings Ratio Apple Google Equity applicab to common shares 201,442 Required: 1. Compute the basic earnings per share (EPS) for each company using these data. 2. Compute the dividend yield for each company using these data. 3. Compute the price-earnings ratio for each company using these data. 4. Based on the price-earnings (PE) ratio, for which company do investors have greater expectations about future performance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Based on the PE ratio, for which company do investors have greater expectations about future performance? Which company do investors have greater expectations about future performance?
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