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?
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
Related questions
Question
Given correct answer general Accounting question

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?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning