Concept explainers
(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.
Dividends yield:
It is the estimation of dividend on
To calculate:
Price earnings ratio and dividend yield for the three companies.
(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.
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Survey of Accounting (Accounting I)
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