The Price to Earnings (P/E) ratio and Earnings Yield are inversely related. The Earnings Yield is simply the reciprocal of the P/E ratio (i.e., 1 / P/E ratio).

First, let's calculate the Earnings Yield of GWW Co. Given that its P/E ratio is 15, the Earnings Yield would be 1 / 15 = 0.0667 or 6.67%.

Now, let's compare this to the competitor's Earnings Yield of 6.25%.

1. Earnings Yield of GWW Co is higher than its competitor's (6.67% 6.25%).

Next, let's compare the P/E ratios. Since the Earnings Yield is the reciprocal of the P/E ratio, a higher Earnings Yield corresponds to a lower P/E ratio and vice versa.

2. P/E Ratio of GWW Co is lower than its competitor's (since its Earnings Yield is higher).

So, the correct answer is:

Earnings yield of GWW: Higher
P/E ratio of GWW: Lower

Question

The Price to Earnings (P/E) ratio and Earnings Yield are inversely related. The Earnings Yield is simply the reciprocal of the P/E ratio (i.e., 1 / P/E ratio).

First, let's calculate the Earnings Yield of GWW Co. Given that its P/E ratio is 15, the Earnings Yield would be 1 / 15 = 0.0667 or 6.67%.

Now, let's compare this to the competitor's Earnings Yield of 6.25%.

1. Earnings Yield of GWW Co is higher than its competitor's (6.67% > 6.25%).

Next, let's compare the P/E ratios. Since the Earnings Yield is the reciprocal of the P/E ratio, a higher Earnings Yield corresponds to a lower P/E ratio and vice versa.

2. P/E Ratio of GWW Co is lower than its competitor's (since its Earnings Yield is higher).

So, the correct answer is:

Earnings yield of GWW: Higher
P/E ratio of GWW: Lower

Knowee AI · Accepted Answer

The Price to Earnings (P/E) ratio and Earnings Yield are inversely related. The Earnings Yield is simply the reciprocal of the P/E ratio (i.e., 1 / P/E ratio).

First, let's calculate the Earnings Yield of GWW Co. Given that its P/E ratio is 15, the Earnings Yield would be 1 / 15 = 0.0667 or 6.67%.

Now, let's compare this to the competitor's Earnings Yield of 6.25%.

1. Earnings Yield of GWW Co is higher than its competitor's (6.67% > 6.25%).

Next, let's compare the P/E ratios. Since the Earnings Yield is the reciprocal of the P/E ratio, a higher Earnings Yield corresponds to a lower P/E ratio and vice versa.

2. P/E Ratio of GWW Co is lower than its competitor's (since its Earnings Yield is higher).

So, the correct answer is:

Earnings yield of GWW: Higher
P/E ratio of GWW: Lower

Assume that GWW Co's P/E ratio is 15. Its competitor's earnings yield is 6.25% . When comparing GWW Co to its competitor, which of the following is correct? Earnings yield of GWW P/E ratio of GWW O Higher Higher O Higher Lower O Lower Higher O Lower Lower

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