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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 8 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education