A stock sells at $15 per share. (a) What is the EPS for the company if it has a P/E ratio of 20? (b) If the company's dividend yield is 5 percent, what is its dividend per share? (c) What is the book value of the company if the price-to-book ratio is 1.5 and it has 100,000 shares of stock outstanding?
A stock sells at $15 per share. (a) What is the EPS for the company if it has a P/E ratio of 20? (b) If the company's dividend yield is 5 percent, what is its dividend per share? (c) What is the book value of the company if the price-to-book ratio is 1.5 and it has 100,000 shares of stock outstanding?
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1DTM
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Transcribed Image Text:A stock sells at $15 per share.
(a) What is the EPS for the company if it has a P/E ratio of 20?
(b) If the company's dividend yield is 5 percent, what is its dividend per share?
(c) What is the book value of the company if the price-to-book ratio is 1.5 and it has
100,000 shares of stock outstanding?
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