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The table below shows recent stock prices, earnings per share,

The table below shows recent stock prices, earnings per share, and dividends per share for three companies.

Question:

Price Earnings per Share Dividends per Share Amazon.com (AMZN) $1,855.32 $5.01 $0.00 McDonald's Corporation (MCD) Microsoft (MSFT) 169.96 6.37 3.83 138.06 5.11 1.84

a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place.

b. Discuss the differences in these ratios across the three companies.

Transcribed Image Text:

Price Earnings per Share Dividends per Share Amazon.com (AMZN) $1,855.32 $5.01 $0.00 McDonald's Corporation (MCD) Microsoft (MSFT) 169.96 6.37 3.83 138.06 5.11 1.84

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a b Amazoncoms price earnings ratio of 3703 is the highest of the three co...View the full answer

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Authors: Carl S. Warren, Amanda Farmer

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Question Posted: Sep 25, 2020 07:22 AM

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The table below shows recent stock prices, earnings per share, and dividends per share for three companies.

Question:

Price Earnings per Share Dividends per Share Amazon.com (AMZN) $1,855.32 $5.01 $0.00 McDonald's Corporation (MCD) Microsoft (MSFT) 169.96 6.37 3.83 138.06 5.11 1.84

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a b Amazoncoms price earnings ratio of 3703 is the highest of the three co...View the full answer

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