The table below shows recent stock prices, earnings per share, and dividends per share for three companies.
Question:
The table below shows recent stock prices, earnings per share, and dividends per share for three companies.
a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place.
b. Discuss the differences in these ratios across the three companies.
Transcribed Image Text:
Price Earnings per Share Dividends per Share Amazon.com (AMZN) $1,855.32 $5.01 $0.00 McDonald's Corporation (MCD) Microsoft (MSFT) 169.96 6.37 3.83 138.06 5.11 1.84
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The dividend yield or dividend–price ratio of a share is the dividend per share, divided by the price per share. It is also a company\\\'s total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.
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