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Price-Earnign Ratio Trens ($ in 000s) Company / Year GPS Tru Year 2017 2018 2019 2020 2021 32 31.282 30.759 30 29.706 29.16
Dividends Payout Ratyio Trend ($ in 000s) Company / Year GPS 0.36 Tru Year 2017 2018 2019 2020 2021 0.3429 0.34 0.32 0.3110

1. Which of the two companies, GPS Corporation or Tru, Inc., pays investors the greater percentage of its earnings during the period 2017-2021?
2. Is the dividend payout ratio for Tru, Inc. (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021?
3. Is the price-earnings ratio for GPS Corporation (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021?
4. Is the price-earnings ratio for Tru, Inc. (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021?
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Answer #1

1.
GPS Corporation pays investors the greater percentage of its earnings during the period 2017-2021.
This can be analysed from the dividend payout bar chart given in the question as the dividend payout ratio of GPS corporation is more over the period of time as compared to the Tru Inc. Dividend payout ratio indicates the ratio of dividend paid to the shareholder from the earning of the company.
So it can be said GPS Corporation pays investors the greater percentage of its earnings during the period 2017-2021.

2. Correct answer is (c) remaining relatively the same during the period 2017-2021
Dividend payout ratio for Tru, Inc. is remaining relatively the same during the period 2017-2021.
From the bar chart it is cleary seen that there is neither increasing trend nor decreasing trend over the period of time. But it show increase and decrease both flow i.e. up and down.
Thus, Dividend payout ratio for Tru, Inc. is remaining relatively the same during the period 2017-2021

3.
Correct answer is (c) remaining relatively the same during the period 2017-2021
From the Price Earning ratio bar chart for GPS Corporation, it can be seen that price-earnings ratio for GPS Corporation is increasing first from 2017 to 2018, then decreasing from 2018 to 2019, then decreasing from 2019 to 2020, and then increasing from 2020 to 2021. There is neither increasing trend nor decreasing trend over the period of time.

Thus price-earnings ratio for GPS Corporation is remaining relatively the same during the period 2017-2021

4.
Correct Answer is (a)increasing significantly

From the Price Earning ratio bar chart for Tru, it is clear that price-earnings ratio for Tru, Inc. is increasing significantly from 2017 to 2022.

Thus price-earnings ratio for Tru, Inc increasing significantly during the period 2017-2021

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