(Equity analysis ratios) Two companies in the transportation industry had the following information: Company 1 Company 2 Basic earnings per share $0.95 $0.61 Market price per share $12.78 $26.89 Dividends per share $0.504 $0.529 Cash flows from operating activities ($ thousands) $68,570 $217,261 Net capital expenditures ($ thousands) $5,788 $69,590 Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.) Company 1 Company 2 times times Price-earnings ratio Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout rati 18.4% and Dividend yield to 2 decimal place, e.g. 13.61%.) Company 1 Company 2 Dividend payout ratio % Dividend yield eTextbook and Media Question Part Score Determine the net free cash flows of both companies. Company 1 Company 2 2$ Net free cash flows (in thousands) 2$

(Equity analysis ratios) Two companies in the transportation industry had the following information: Company 1 Company 2 Basic earnings per share $0.95 $0.61 Market price per share $12.78 $26.89 Dividends per share $0.504 $0.529 Cash flows from operating activities ($ thousands) $68,570 $217,261 Net capital expenditures ($ thousands) $5,788 $69,590 Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.) Company 1 Company 2 times times Price-earnings ratio Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout rati 18.4% and Dividend yield to 2 decimal place, e.g. 13.61%.) Company 1 Company 2 Dividend payout ratio % Dividend yield eTextbook and Media Question Part Score Determine the net free cash flows of both companies. Company 1 Company 2 2$ Net free cash flows (in thousands) 2$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

(Equity analysis ratios)
Two companies in the transportation industry had the following information:
Company 1
Company 2
Basic earnings per share
$0.95
$0.61
Market price per share
$12.78
$26.89
Dividends per share
$0.504
$0.529
Cash flows from operating activities ($ thousands)
$68,570
$217,261
Net capital expenditures ($ thousands)
$5,788
$69,590
Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.)
Company 1
Company 2
times
times
Price-earnings ratio
Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout ratio to 1
18.4% and Dividend yield to 2 decimal place, e.g. 13.61%.)
Company 1
Company 2
Dividend payout ratio
%
Dividend yield
eTextbook and Media
Question Part Score
Determine the net free cash flows of both companies.
Company 1
Company 2
2$
Net free cash flows (in thousands)
2$

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