The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:   Price Earnings per Share Dividends per Share Deere & Company (DE) $103.04   $4.83   $2.40   Alphabet (GOOG) 792.45   20.91   0.00   The Coca-Cola Company (KO) 178.85   1.51   1.40   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 fill in the blank 1 fill in the blank 2% Alphabet fill in the blank 3 fill in the blank 4% The Coca-Cola Company fill in the blank 5 fill in the blank 6% b.  Explain the differences in these ratios across the three companies by completing the following: Deere & Company has the   price-earnings ratio, and is expected to produce shareholder returns through  . Coca-Cola has a   dividend yield and   price-earnings ratio. Alphabet pays   dividend and, thus, has   dividend yield. Alphabet has a   price-earnings ratio.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 22E
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The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:

 
Price
Earnings
per Share
Dividends
per Share
Deere & Company (DE) $103.04   $4.83   $2.40  
Alphabet (GOOG) 792.45   20.91   0.00  
The Coca-Cola Company (KO) 178.85   1.51   1.40  

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 fill in the blank 1 fill in the blank 2%
Alphabet fill in the blank 3 fill in the blank 4%
The Coca-Cola Company fill in the blank 5 fill in the blank 6%

b.  Explain the differences in these ratios across the three companies by completing the following:
Deere & Company has the   price-earnings ratio, and is expected to produce shareholder returns through  . Coca-Cola has a   dividend yield and   price-earnings ratio. Alphabet pays   dividend and, thus, has   dividend yield. Alphabet has a   price-earnings ratio.

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