The table that follows shows the stock price, earnings per share, and dividends per share for three

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The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:
Price Earnings Dividends
per Share per Share
Deere & Company.....................$ 82.29................$ 4.98............$2.40
Alphabet (Google) .....................735.72.................24.58..............0.00
The Coca-Cola Company...............44.60..................1.66...............1.40
a. Determine the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decimal place as appropriate.
b. Explain the differences in these ratios across the three companies.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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