In 2008 CDZ corporation had a total earnings of $500 million and kept 30% of it for future expansion. If the price of CDZ stock was $70 and there were 80 million shares outstanding, what was the P/E ratio? 16.0 O 11.2 37.3 0.14
In 2008 CDZ corporation had a total earnings of $500 million and kept 30% of it for future expansion. If the price of CDZ stock was $70 and there were 80 million shares outstanding, what was the P/E ratio? 16.0 O 11.2 37.3 0.14
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![In 2008 CDZ corporation had a total earnings of $500 million and kept 30% of it for future
expansion. If the price of CDZ stock was $70 and there were 80 million shares outstanding, what
was the P/E ratio?
16.0
11.2
37.3
O 0.14](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42f9d7c6-4c7a-44ab-8c36-1d379ff2d1eb%2F072d5041-dea9-4d22-9119-fe3c30514bfb%2F36h03pg_processed.png&w=3840&q=75)
Transcribed Image Text:In 2008 CDZ corporation had a total earnings of $500 million and kept 30% of it for future
expansion. If the price of CDZ stock was $70 and there were 80 million shares outstanding, what
was the P/E ratio?
16.0
11.2
37.3
O 0.14
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