The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: PriceEarningsper ShareDividendsper ShareDeere & 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 RatioDividend YieldDeere & Companyfill in the blank 1fill in the blank 2%Alphabetfill in the blank 3fill in the blank 4%The Coca-Cola Companyfill in the blank 5fill 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.

The question is based on the concept of Financial Accounting

Answered: The table that follows shows the stock…

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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