7.EX.14-22 ALGO (Algorithmic) Price-Earnings Ratio; Dividend Yield The table tha

Question

7.EX.14-22 ALGO (Algorithmic) Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year Earnings Dividends per Share Priceper Share ones Co $109.94 Smith Co. Tucker Co. $4.60 $2.97 167.04 3.17 2.25 51.10 3.50 a. Determine the price-earnings ratio and dividend vield for the three companies. Round to one decimal place. an t should be zero, enter in "0 Price-Earnings Ratio Dividend ied ones Co Smith Co. Tucker Co. b. Explain the differences in these ratios across the three companies by completing the folowing Tucker Co.has th -nce-earrings ratio. 20nes Co. has both Smith Ce, has mcetarnngs ratio orthe three compares.

Explanation / Answer

Price earnings ratio = Market price per share / Earnings per share

Jones & Co. = 109.94 / 4.60 = 23.9

Smith and co. = 167.04 / 2.90 = 57.60

Tucker & Co. = 1.10 / 3.50 = 0.314

Dividend yield = dividend per share / market price per share

Jones & Co. = 2.97 / 109.94 = 2.70%

Smith and co. = 3.17 / 167.04 = 1.89%

Tucker & Co. = 2.25 / 1.10 = 204%

B. Is not clear as it is blurred can you please provide question in comment so that i can answer it.

for waht i can see is

Dividend yield show what percentage of price is paid to shareholder in terms of dividend. Smith 7 Co.has lowest dividend yield (1.89%) followed by Jones & Co.(2.70%) and Tucker & Co. has highest dividend yield(higher is better)

Thank you

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