Compute the book value per common share for each company


Assignment: COMPARATIVE ANALYSIS

BTN 11-2 Key comparative figures for Apple and Google follow.

Key Figures

Net income (in millions)
$ 41,733 - Apple
$ 10,737 - Google

Cash dividends declared per common share
$ 2.65 - Apple
$ - - Google

Common shares outstanding (in millions)
$939,208 - Apple
$329,979 - Google

Weighted-average common shares outstanding (in millions)
$934,818 - Apple
$327,213 - Google

Market value (price) per share
$ 655.88 - Apple
$ 707.38 - Google

Equity applicable to common shares (in millions)
$118,210 - Apple
$ 71,715 - Google

Required

1. Compute the book value per common share for each company using these data.

2. Compute the basic EPS for each company using these data.

3. Compute the dividend yield for each company using these data. Does the dividend yield of either of the companies characterize it as an income or growth stock? Explain.

4. Compute, compare, and interpret the price-earnings ratio for each company using these data.

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Corporate Finance: Compute the book value per common share for each company
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