Question: Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each): Stock
Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each):
| Stock ABC | Stock XYZ | |
| Stock Price | $100 | $45 |
| Dividend | $2 | $1.50 |
| Earnings | $6.67 | $1.12 |
| A. | ABC pays a higher dividend, but is relatively expensive based on its Price/Earnings ratio. | |
| B. | ABC has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio. | |
| C. | XYZ has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio. | |
| D. | XYZ pays a lower dividend, but is relatively cheap based on it Price/Earnings ratio. |
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