A company pays out all its earnings as dividends. It will pay its next $2.50 per share dividend in a year. The discount rate is 8 percent. What is the price-earnings ratio?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A company pays out all its earnings as dividends. It will pay its next $2.50 per share dividend in a year. The discount rate is 8 percent. What
is the price-earnings ratio?
Multiple Choice
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Transcribed Image Text:요 * 00 96 %23 A company pays out all its earnings as dividends. It will pay its next $2.50 per share dividend in a year. The discount rate is 8 percent. What is the price-earnings ratio? Multiple Choice 10.4 12.5 < Prev 5 of 15 5:07 PM 12/1/2021 pe here to search 直 Jade Del Home PrtSc Pause F12 F11 F10 Scr Lk SysRq Break su F7 F4 F5 Backspace Co) 2$ 6. #3 8. 9. 2 } P. R. %3D HEnter H. Shift N. Alt Gr 目 Alt
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