Determine the price-earnings ratio and dividend yield

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Problem - Price-earnings ratio; dividend yield

The table below shows the stock price, earnings per share, and dividends per share for three companies as of May 2010:

 

Price

Earnings per Share

Dividends per Share

The Home Depot

$33.43

$1.57

$0.95

Google

493.14

21.99

0.00

The Coca-Cola Company

52.67

3.04

1.76

Required -

a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place.

b. Explain the differences in these ratios across the three companies.

Reference no: EM132684359

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