AutoSave Off H Document2 - Word brandon maynard File Home Insert Draw Design Layout References Mailings Review View Help Companies A and B are direct competitors in their market. Each has just announced year-end results as follows: COMPANY A COMPANY B Value of company assets: $120,500,000 Total of company liabilities: $60,500,000 Net Income: $10,600,000 Common Stock Dividends: $2,500,000 Preferred Stock Dividends: $4,000,000 Number of common shares outstanding: 1,000,000 Current Stock Price: $100.00 per share Value of company assets: $1,000,000 Total of company liabilities: $0 Net Income: $75,000 Common Stock Dividends: $25,000 Preferred Stock Dividends: None Nurnber of common shares outstanding: 100,000 Current Stock Price: $10.00 per share First, make the following calculations: A. Book value per share. B. Earnings per share. C. Dividend yield. D. Price/Earnings Ratio. E. Market to book ratio. Assume that both companies are in the same business and compete directly with each other. BASED ON YOUR FINANCIAL ANALYSIS OF THIS VERY LIMITED INFORMATION, IN WHICH COMPANY WOULD YOU PREFER TO INVEST? EXPLAIN. Think critically, as if you were investing your own, hard-earned money. Be sure to address how each of the calculations (A-E) affects your analysis. Also, explain how the sheer size difference (asset amount) and relative amounts of debt (financial risk) affect your decision. Page 1 of 1 188 words English (United States) Docus + 89% RESERCE O . BI W 71F 11:57 AM 10/8/2021