Please given answer accounting question If a $22 per share stock has a P/E ratio of 12 and paysout 40 percent of its profits in dividends, how muchprofit is it earning per share?

Step 1: Define P/E RatioThe P/E ratio or price-to-income ratio is the link between the corporation's…

Answered: If a $22 per share stock has a P/E…

Personal Finance

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ISBN:9781337669214

Author:GARMAN

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Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

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If a $22 per share stock has a P/E ratio of 12 and pays out 40 percent of its profits in dividends, how much profit is it earning per share?