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 |
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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
