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

To calculate the stock price, we need to use the information provided and some basic financial…

Answered: Gnomes R Us just paid a dividend of…

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?