The following information relates to three companies in the same industry:
|
Company |
Latest market price |
Earnings per share |
Dividends per share |
|
A |
$35 |
$11 |
$-0- |
|
B |
40 |
5 |
4 |
|
C |
90 |
10 |
6 |
Required: Explain and calculate the price-earnings and dividend yield ratios. On the basis of only the foregoing information, which company represents the most attractive investment opportunity to you? Explain.
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