Kristy Nguyen is trying to decide between two different stock investments, and she asks for your help. Information about each investment is below.

1. Calculate the dividend yield for each company.
2. Calculate the earnings per share for each company.
3. Calculate the price-earnings (P-E) ratio for each company.
4. Based on this information, which company would you recommend?

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Company One Source Manufacturing Down South Homes Price per Share $24 $40 After-Tax Income This Year $35 million $0.56 $122 million Annual Dividend $0.40 Projected Earnings Next Year $39 million $90 million Number of Shares Outstanding 20 million shares 140 million shares