(a) Price earnings ratio P/E ratio: It indicates the amount an investor can expect to invest in a company in order to receive one dollar of company's earnings. It shows the future prospects of the investment. Price Earnings ratio= Market value of share Earning per share Dividends yield: It is the estimation of dividend on return of stock investment. Dividends yield= Annual dividend share price To calculate: Price earnings ratio and dividend yield for the three companies.
(a) Price earnings ratio P/E ratio: It indicates the amount an investor can expect to invest in a company in order to receive one dollar of company's earnings. It shows the future prospects of the investment. Price Earnings ratio= Market value of share Earning per share Dividends yield: It is the estimation of dividend on return of stock investment. Dividends yield= Annual dividend share price To calculate: Price earnings ratio and dividend yield for the three companies.
Solution Summary: The author explains the differences in price earnings ratio and dividend yield across three companies.
Formula Formula ROI (%) = Net Income Principal Amount × 100
Chapter 9, Problem 9.22E
To determine
(a)
Price earnings ratio P/E ratio:
It indicates the amount an investor can expect to invest in a company in order to receive one dollar of company's earnings. It shows the future prospects of the investment.
Price Earnings ratio=Market value of share Earning per share
Dividends yield:
It is the estimation of dividend on return of stock investment.
Dividends yield=Annual dividendshare price
To calculate:
Price earnings ratio and dividend yield for the three companies.
To determine
(b)
Price earnings ratio P/E ratio:
It indicates the amount an investor can expect to invest in a company in order to receive one dollar of company's earnings. It shows the future prospects of the investment.
Dividends yield:
It is the estimation of dividend on return of stock investment.
To explain:
Differences in price earnings ratio and dividend yield across three companies.
Roosevelt Equipment Ltd. manufactures industrial cranes. The standard for a specific crane model calls for 30 direct labor hours at $22 per direct labor hour. During a recent period, 400 cranes were produced. The labor rate variance was zero, and the labor efficiency variance was $8,800 unfavorable. How many actual direct labor hours were worked?
Nolan Industries assigns overhead costs to jobs on the basis of 140% of direct labor costs. The job cost sheet for Job 627 includes $31,200 in direct materials cost and $18,500 in direct labor cost. A total of 2,500 units were produced in Job 627. Required: a. What is the total manufacturing cost assigned to Job 627? b. What is the unit product cost for Job 627?
Carlisle Services reported revenues of $78,000, expenses of $72,500, and dividends of $5,800 for the month ended February 28, 2024. Carlisle Services experienced a net income or net loss of what amount?
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