Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Question
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 dividends per share for three companies for a recent year:
Dividends
Earnings
per Share
per Share
Price
$27.23
Jones Co.
$0.70
$0.87
Smith Co.
185.89
2.90
3.53
Tucker Co.
88.20
4.50
3.70
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
Tucker Co. has the
companies by completing the following:
price-earnings ratio. Jones Co. has both al
dividend yield and price-earnings ratio and is expected to
price-earnings ratio of the three companies.
Smith Co. has the
produce shareholder returns through,
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
Jones Co.
$161.13
$4.10
$4.83
Smith Co.
42.28
0.70
0.85
Tucker Co.
78.32
4.40
2.90
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.
%
Chapter 17 Solutions
Accounting
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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