Highland Tools just paid a dividend of $2.75 per share. The company has a dividend payout ratio of 55 percent. If the PE ratio is 16.4 times, what is the stock price?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Highland Tools just paid a dividend
of $2.75 per share. The company has
a dividend payout ratio of 55
percent. If the PE ratio is 16.4 times,
what is the stock price?
Transcribed Image Text:Highland Tools just paid a dividend of $2.75 per share. The company has a dividend payout ratio of 55 percent. If the PE ratio is 16.4 times, what is the stock price?
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