True or False. The PE Ratio in the data is useful to retirees John and Jill to compare the performance of companies?Company Nameand CodeClose orLast SaleMove + or – (cents)Turnover or VolumeDividend Yield %Price/Earnings (P/E) Ratio52 Week High $52 Week Low $Last Dividend paid per Share $Fortescue (FMG)$20.57-$0.132,695,43610.06%6.82$22.99$14.50$1.21Domino’s Pizza (DMP)$65.01-$0.85185,1132.40%35.54$123.33$49.83$0.68JB Hi Fi (JBH)$42.15-$0.41292,7967.49%8.83$56.85$36.69$1.53Suncorp (SUN)$12.00-$0.111,678, 7953.33%23.26$12.38$9.85$0.17Woolworths (WOW)$34.06-$0.36939,1142.70%27.06$39.63$31.67$0.53True1False
Question
True or False. The PE Ratio in the data is useful to retirees John and Jill to compare the performance of companies?Company Nameand CodeClose orLast SaleMove + or – (cents)Turnover or VolumeDividend Yield %Price/Earnings (P/E) Ratio52 Week High Last Dividend paid per Share 20.57-22.991.21Domino’s Pizza (DMP)0.85185,1132.40%35.5449.8342.15-56.851.53Suncorp (SUN)0.111,678, 7953.33%23.269.8534.06-39.630.53True1False
Solution
True. The Price/Earnings (P/E) Ratio is a useful tool for comparing the performance of companies. It provides an indication of the market's expectation of a company's future earnings growth. A higher P/E ratio could suggest the market has high hopes for a company's future earnings growth, while a lower P/E ratio might suggest the market has lower expectations. Therefore, retirees John and Jill could use the P/E ratio to compare the performance of different companies and make informed decisions about where to invest.
Similar Questions
Which shares paid dividends greater than $1?Company Nameand CodeClose orLast SaleMove + or – (cents)Turnover or VolumeDividend Yield %Price/Earnings (P/E) Ratio52 Week High $52 Week Low $Last Dividend paid per Share $Fortescue (FMG)$20.57-$0.132,695,43610.06%6.82$22.99$14.50$1.21Domino’s Pizza (DMP)$65.01-$0.85185,1132.40%35.54$123.33$49.83$0.68JB Hi Fi (JBH)$42.15-$0.41292,7967.49%8.83$56.85$36.69$1.53Suncorp (SUN)$12.00-$0.111,678, 7953.33%23.26$12.38$9.85$0.17Woolworths (WOW)$34.06-$0.36939,1142.70%27.06$39.63$31.67$0.53Select ALL correct optionsWOW1DMP2SUN3FMG4JBH
Retirees John and Jill wish to only keep shares in their portfolio with a Dividend Yield greater than 5%. Based upon this, which shares should they sell?Company Nameand CodeClose orLast SaleMove + or – (cents)Turnover or VolumeDividend Yield %Price/Earnings (P/E) Ratio52 Week High $52 Week Low $Last Dividend paid per Share $Fortescue (FMG)$20.57-$0.132,695,43610.06%6.82$22.99$14.50$1.21Domino’s Pizza (DMP)$65.01-$0.85185,1132.40%35.54$123.33$49.83$0.68JB Hi Fi (JBH)$42.15-$0.41292,7967.49%8.83$56.85$36.69$1.53Suncorp (SUN)$12.00-$0.111,678, 7953.33%23.26$12.38$9.85$0.17Woolworths (WOW)$34.06-$0.36939,1142.70%27.06$39.63$31.67$0.53Select ALL correct optionsSUN1JBH2WOW3FMG4DMP
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Which of the following scenarios could lead to a decrease in a company's P/E ratio?
If two companies have the same earnings but different P/E ratios, what could be a potential reason?
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