General Accounting 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?

Step 1: Define Price-Earnings Ratio (P/E)The Price-Earnings Ratio (P/E) is beneficial to the…

Answered: Gnomes R Us just paid a dividend of…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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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?