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. Check My Work 3 more Check My Work uses remaining. Previous Next e v 12:1

Dividend Payout Ratio Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year Previous Year Current Year $45,500 $62,400 1,300,000 1,950,000 The dividend payout 2.47 2.85 24.70 Calculate the dividend payout for Evans & Sons for each year. Did the dividend payout increase? Numerator Denominator ♦ 2.60 3.20 27.30 0 0 ◆ from previous year to the current year. 0 0 Dividend Payout Ratio % %

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Consider the following information: Beginning number of shares Ending number of shares Dividend per share Market price per share Net income The dividend yield is 5.8% 6.3% 6.0% 3.0% 149,000 160,000 $1.80 $60.00 $933,000

Given the following information, which company's stockholders received the highest return in the form of dividends? Company W Company X Company Y Company Z $4.35 $4.75 $4.20 $5.25 25.1 17.2 18.3 22.0 3.0% 3.2% 0.0% 2.8% Earnings per share Price-earnings ratio Dividend yield a. Company Z b. Company X c. Company Y d. Company W

Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 64 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Retained earnings, January 1 $ 3,099,650   $ 2,623,250   Net income 681,600   537,300   Total $ 3,781,250   $ 3,160,550   Dividends           On preferred stock $ 9,100   $ 9,100     On common stock 51,800   51,800       Total dividends $ 60,900   $ 60,900   Retained earnings, December 31 $ 3,720,350   $ 3,099,650   Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Sales $ 4,210,640   $ 3,879,520   Cost of goods sold 1,554,900   1,430,510   Gross profit $ 2,655,740   $ 2,449,010   Selling expenses $ 893,140   $ 1,089,600   Administrative expenses 760,830…

Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield   Debt ratio   Current Ratio   Price/Earnings Ratio   Acid-test ratio   Earnings per share     1.  The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.

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Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Retained earnings, January 1 $ 1,024,550   $ 869,250   Net income 233,600   178,000   Total $ 1,258,150   $ 1,047,250   Dividends           On preferred stock $ 7,700   $ 7,700     On common stock 15,000   15,000       Total dividends $ 22,700   $ 22,700   Retained earnings, December 31 $ 1,235,450   $ 1,024,550   Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Sales $ 1,456,350   $ 1,341,770   Cost of goods sold 520,490   478,850   Gross profit $ 935,860   $ 862,920   Selling expenses $ 319,920   $ 392,750   Administrative expenses 272,520   230,660   Total…

Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Retained earnings, January 1 $1,173,375   $995,425   Net income 259,200   203,900   Total $1,432,575   $1,199,325   Dividends:           On preferred stock $8,400   $8,400     On common stock 17,550   17,550       Total dividends $25,950   $25,950   Retained earnings, December 31 $1,406,625   $1,173,375   Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1        20Y2      20Y1 Sales $1,622,790   $1,495,130   Cost of goods sold 611,010   562,130   Gross profit $1,011,780   $933,000   Selling expenses $341,930   $416,290   Administrative expenses 291,280   244,490   Total operating…