History Bookmarks Window Help Sun 1:02 AM v2.cengagenow.com eBook Calculator Print Item Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for th ree companies for a recent year: Earnings Dividends Price per Share per Share Deere & Company $86.20 $8.71 $2.04 Google 873.32 36.75 0.00 The Coca-Cola Company 39.79 1.97 1.02 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "0" Price-Earnings Ratio Dividend Yield Deere& Company 9.90 Google 23.8 0 The Coca-Cola Company 20.20 b. Explain the differences in these ratios across the three companies by completing the following: Deere & Company has the lowest price-earnings ratio, and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Coca-Cola has both a high dividend yield and price- earnings ratio. Google pays no dividend and, thus, has no dividend yield. However, Google has the largest price-earnings ratio of the three companies. CAndhack Check My Work ( Previous Next All work saved. Save and Exit Submit Assignment for Grading JUL 1
History Bookmarks Window Help Sun 1:02 AM v2.cengagenow.com eBook Calculator Print Item Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per share, and dividends per share for th ree companies for a recent year: Earnings Dividends Price per Share per Share Deere & Company $86.20 $8.71 $2.04 Google 873.32 36.75 0.00 The Coca-Cola Company 39.79 1.97 1.02 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "0" Price-Earnings Ratio Dividend Yield Deere& Company 9.90 Google 23.8 0 The Coca-Cola Company 20.20 b. Explain the differences in these ratios across the three companies by completing the following: Deere & Company has the lowest price-earnings ratio, and is expected to produce shareholder returns through a combination of some share price appreciation and a moderate dividend Coca-Cola has both a high dividend yield and price- earnings ratio. Google pays no dividend and, thus, has no dividend yield. However, Google has the largest price-earnings ratio of the three companies. CAndhack Check My Work ( Previous Next All work saved. Save and Exit Submit Assignment for Grading JUL 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:History Bookmarks Window Help
Sun 1:02 AM
v2.cengagenow.com
eBook
Calculator
Print Item
Price-Earnings Ratio; Dividend Yield
The table that follows shows the stock price, earnings per share, and dividends per share for th ree companies for a recent year:
Earnings Dividends
Price
per Share per Share
Deere & Company
$86.20
$8.71
$2.04
Google
873.32
36.75
0.00
The Coca-Cola Company
39.79
1.97
1.02
a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in
"0"
Price-Earnings Ratio
Dividend Yield
Deere& Company
9.90
Google
23.8
0
The Coca-Cola Company
20.20
b. Explain the differences in these ratios across the three companies by completing the following:
Deere & Company has the lowest price-earnings ratio, and is expected to produce shareholder returns through
a combination of some share price appreciation and a moderate dividend
Coca-Cola has both a high
dividend yield and price-
earnings ratio. Google pays no
dividend and, thus, has no
dividend yield. However, Google has the largest
price-earnings ratio of
the three companies.
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