Question

Given the following information, which company had the highest profits per share of stock?

Company W Company X Company Y Company Z
Earnings per share $4.35 $4.75 $4.20 $5.25
Price-earnings ratio 25.1 17.2 18.3 22.0
Dividend yield 3.0% 3.2% 0.0% 2.8%

a. Company Z
b. Company W
c. Company Y
d. Company X

Answer 1

Company X had the highest profits per share of stock.

Step-by-step explanation:

To determine which company had the highest profits per share of stock, we need to compare the earnings per share of each company. Earnings per share is calculated by dividing the company's total earnings by the number of shares outstanding. Looking at the given information, we can see that Company X had the highest earnings per share of $4.75. Therefore, Company X had the highest profits per share of stock.