The following table shows the stock price, earnings per share, and dividends per share for Alphabet Inc. (GOOG), PepsiCo, Inc. (PEP), and Caterpillar Inc. (CAT) for a recent year:

1. For each company, determine the:
a. Price-earnings ratio.
b. Dividend yield.
2. Based on the information available, which company would you expect to have the best potential for future common stock price appreciation? Why?

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Market price of common stock at year-end Earnings per share Dividends per share Alphabet PepsiCo $1,339.39 $136.67 49.59 0.00 5.23 3.79 Caterpillar $147.68 10.85 3.80