Casebier, Eleanor||Hackamack, Lawrence C. (Lawrence Carroll), 1921-
M.S. (Master of Science)
Department of Management and Finance
The purpose of this study is to determine which of the two relationships, earnings per share to market price of common stock or dividends per share to market price of common stock, has the greater degree of correlation. This study used a selected control group of five privately owned public electrical utilities which are similar, to study the relationships. These were the five privately owned public electrical utilities which composed the selected control group; 1. Central Maine Power Company 2. Indianapolis Power and Light Company 3. Kansas City Power and Light Company 4. Portland General Electric Company 5. Puget Sound Power and Light Company The study arrives at the following conclusions; 1. The relationship of earnings per share to market price of common stock the greater degree of correlation (coefficient of correlation being 0.964, 0.972 and 0.878). 2. The relationship of dividends per share to Market price has a high degree of correlation (coefficient of correlation being 0.850, 0.524 and 0.852). These conclusions affirm the conventional theory that per share have the greater relationship to market price in the controlled group used in this study.
Forsythe, Charles Eugene, "A statistical study of the relationship of earnings per share to market price and dividends per share to market price in a selected control group" (1962). Graduate Research Theses & Dissertations. 573.
x, 54 pages
Northern Illinois University
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