Accounting, Chapters 14-26
27th Edition
ISBN: 9781337514095
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 17, Problem 17.22EX
(a)
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
Given info: Items from financial statements
(1)
To determine: Price earnings ratio
(b)
To determine
To explain: The differences in the ratio across the companies.
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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
Price
per Share
Share
Deere & Co.
$86.20
$8.71
$2.04
Google
873.32
36.75
0.00
The Coca-Cola
39.79
1.97
1.02
Company
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 "O".
Price-Earnings Ratio
Dividend Yield
Deere & Co.
%
Google
%
The Coca-Cola Company
%
Price-Earnings Ratio; Dividend Yield
The table that follows shows the stock price, earnings per share, and divVidends per share for three companies for a recent year:
Earnings
Dividends
Price
per Share
per Share
Jones Co.
$134.08
$3.20
$4.16
Smith Co.
206.72
3.40
0.00
Tucker Co.
44.50
2.50
1.65
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
Jones Co.
Smith Co.
Tucker Co.
b. Explain the differences in these ratios across the three companies by completing the following:
Tucker Co. has the
price-earnings ratio, Jones Co. has both a
dividend yield and price-earnings ratio and is
expected to produce shareholder returns through
.Smith Co, has the
price-earnings ratio of the three companies.
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e v 12:1
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:
Price
Earningsper Share
Dividendsper 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…
Chapter 17 Solutions
Accounting, Chapters 14-26
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - A companys current year net income (after income...Ch. 17 - How would the current and quick ratios of a...Ch. 17 - Prob. 5DQCh. 17 - What do the following data, taken from a...Ch. 17 - a. How does the return on total assets differ from...Ch. 17 - Kroger, a grocery store, recently had a price-...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Horizontal analysis The comparative temporary...Ch. 17 - Prob. 17.1BPECh. 17 - Vertical analysis Income statement information for...Ch. 17 - Vertical analysis Income statement information for...Ch. 17 - Prob. 17.3APECh. 17 - Prob. 17.3BPECh. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Prob. 17.6APECh. 17 - Long-term solvency analysis The following...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Prob. 17.11APECh. 17 - Prob. 17.11BPECh. 17 - Prob. 17.1EXCh. 17 - Prob. 17.2EXCh. 17 - Common-sized income statement Revenue and expense...Ch. 17 - Vertical analysis of balance sheet Balance sheet...Ch. 17 - Horizontal analysis of the income statement Income...Ch. 17 - Current position analysis The following data were...Ch. 17 - Prob. 17.7EXCh. 17 - Current position analysis The bond indenture for...Ch. 17 - Accounts receivable analysis The following data...Ch. 17 - Accounts receivable analysis Xavier Scores Company...Ch. 17 - Inventory analysis The following data were...Ch. 17 - Inventory analysis QT, Inc. and Elppa Computers,...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Prob. 17.16EXCh. 17 - Profitability ratios The following selected data...Ch. 17 - Profitability ratios Ralph Lauren Corporation...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Five measures of solvency or profitability The...Ch. 17 - Prob. 17.21EXCh. 17 - Prob. 17.22EXCh. 17 - Earnings per share, discontinued operations The...Ch. 17 - Prob. 17.24EXCh. 17 - Prob. 17.25EXCh. 17 - Prob. 17.1APRCh. 17 - Prob. 17.2APRCh. 17 - Prob. 17.3APRCh. 17 - Measures of liquidity, solvency, and profitability...Ch. 17 - Solvency and profitability trend analysis Addai...Ch. 17 - Prob. 17.1BPRCh. 17 - Prob. 17.2BPRCh. 17 - Effect of transactions on current position...Ch. 17 - Measures of liquidity, solvency and profitability...Ch. 17 - Solvency and profitability trend analysis Crosby...Ch. 17 - Financial statement analysis The financial...Ch. 17 - Prob. 17.1CPCh. 17 - Prob. 17.3CPCh. 17 - Common-sized income statements The condensed...Ch. 17 - Profitability analysis Deere Company manufactures...Ch. 17 - Comprehensive profitability and solvency analysis...
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