P Co's Earnings Per Share Ratios Were $1

question 113

Multiple Choice

P Co's earnings per share ratios were $1.31 and $1.36 respectively for 20X2 and 20X1. P Co's share was trading at $40 7/16 in 20X2 and $34 11/16 in 20X1. They paid cash dividends of $.515 per share in 20X2 and $.46 per share in 20X1. Total shareholders' equity was $6,401 million and $6,936 million in 20X2 and 20011 respectively. The common shares outstanding were approximately 1,519,000,000 and 1,570,000,000 in 20X2 and 20X1 respectively.
-Calculate P Co's dividend yield for 20X2 and 20X1 respectively.

• A) 3.5% and 3.6%
• B) 39.3% and 33.8%
• C) 1.3% and 1.3%
• D) 38.6% and 34.5%

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Definitions:

Correlation Coefficients

Statistical measures that indicate the extent to which two variables fluctuate together, showing the strength and direction of their relationship.

Linear Regression

A calculation of the value of one variable given the value of another. Linear regression assumes that the relationship between variables is linear. See also regression.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data.

Type II Error

Deciding wrongly that there was no significant result when in fact there was.