Homework Answers
c)
For WIWO Co.
Price earning ratio = Market price per share/Earnings per share
= 26/4.69
= 5.54
Dividend yield = Cash dividend paid/ Market price per share
= 6/26
= 23.07% (rounded to two decimals)
For OHPO Co.
Price earning ratio = Market price per share/Earnings per share
= 29/5.29
= 5.48
Dividend yield = Cash dividend paid/ Market price per share
= 5.30/29
= 18.28% (rounded to two decimals)
d)
Since price earning ratio of OHPO Co. is lower, hence it is better to buy shares of OHPO Co. To earn $1, the investment needed is $5.48 in OHPO Co. and to earn $1, the investment needed in WIWO Co. is $5.54.
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(C) Assuming the following information: WIWO Co. RM26 RM 6 RM 4.69 28.85 23% OHPO Co....
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answer case 23
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