If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%, what is the stock's current price? a. $24.30 b. $18.00 c. $22.22 d. $40.50
If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%, what is the stock's current price? a. $24.30 b. $18.00 c. $22.22 d. $40.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If a stock's P/E ratio is 13.5 at a time when earnings
are $3 per year and the dividend payout ratio is 40%,
what is the stock's current price?
a. $24.30
b. $18.00
c. $22.22
d. $40.50
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