You are employed by a well-known Wall Street Brokerage firm as a Financial Advisor and your role is to provide financial advice to current and prospective clients. You have noticed an upsurge in interest by clients willing to invest in healthcare related companies due to the opportunities of profitability and growth in the healthcare industry due to the COVID-19 pandemic. Below are information relating to two healthcare related companies:

1. Calculations CVS HUM (40%)

1. Price/Earning Ratio:

2. Dividend Yield:

3. Dividend Payout Ratio:

B. In addition to the above calculations, please complete the following:

1. What information is provided by the Price/Earnings Ratio? And which one of the companies would you recommend to the client based on the calculation? Please explain. (20%)

2. What information is provided by the Dividend Yield? And which one of the companies would you recommend to the client based on the calculation? Please explain. (20%)

You are employed by a well-known Wall Street Brokerage firm as a Financial Advisor and your role is to provide Onancial advice to current and prospective clients. You have noticed an upsurge in interest by clients willing to invest in healthcare related companies due to the opportunities of profitability and growth in the healthcare industry due to the COVID-19 pandemic. Below are information relating to two healthcare related companies: Selected Financial Information Market price per common share (10/30/20) Diluted Earnings per share Annual Dividend Rate Dividend Payment Net Income attributable to Common stockholders CVS Health Corporation (CVS) $56.09 $6.29 $2.00 $2,603M $6,634M Humana Inc. (HUM) $399.28 $26.27 $2.50 $291M $2,707M Requirement: Please calculate the following 1. Price/Earning Ratio (Market price per common stock / Diluted Earnings per Share) 2. Dividend Yield (Annual Dividend Rate / Market price per common stock) 3. Dividend Payout Ratio (Dividend Paid / Net Income Atributable to common stockholders) A. Calculations CVS HUM 1. Price/Earning Ratio: 2. Dividend Yield: 3. Dividend Payout Ratio: B. In addition to the above calculations, please complete the following: 1. What information is provided by the Price/Earnings Ratio? And which one of the companies would you recommend to the client based on the calculation? Please explain. 2 What information is provided by the Dividend Yield? And which one of the companies would you recommend to the client based on the calculation? Please explain. 3 What information is provided by the Dividend Payout ratio? And which one of the companies would you recommend to the client based on the calculation? Please explain