Draw a graph of what you hope your stock market portfolio will look like thru June

2

2

Apple has a price of $160 and an EPS of $8, Microsoft has an P/E Ratio of 30, and a Price of $90.

What is Apple's P/E?

5%

20

80

5

3

2

Apple has a price of $160 and an EPS of $8, Microsoft has an P/E Ratio of 30, and a Price of $90.

What is Microsoft's earnings per share?

$3

3%

270

27%

4

2

Apple has a price of $160 and an EPS of $8, Microsoft has an P/E Ratio of 30, and a Price of $90.

If you were to choose based off of PE Ratio. Which company is the better deal?

Microsoft

Apple

5

2

Apple has a price of $160 and an EPS of $8, Microsoft has an P/E Ratio of 30, and a Price of $90.

If Apple pays $4 in dividend, and Microsoft pays $3 in dividend, which has a better yield?

Microsoft

Apple

Yields are equal

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