Gnomes R Us just paid a dividend of $1.87 per share. The company has a dividend payout ratio of 60 percent. If the PE ratio is 16.6 times, what is the stock price?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Gnomes R Us just paid a dividend of $1.87 per share.
The company has a dividend payout ratio of 60
percent. If the PE ratio is 16.6 times, what is the stock
price?
Transcribed Image Text:Gnomes R Us just paid a dividend of $1.87 per share. The company has a dividend payout ratio of 60 percent. If the PE ratio is 16.6 times, what is the stock price?
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