I need assistance with the following problem - Please include step by step calculations Suppose there are two states of nature in the future.


COMPARATIVE ANALYSIS A1 A2 A3 A4

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.