On June 17th, 2016 Walmart stock had a price of $71.30, a P/E ratio of 15.7, and a dividend yield of 2.81%. Which of the following statements is correct? The dividend per share was $2 and retained earnings per share was $2.54. The earnings per share was $2.54 and dividend per share was $2. The earnings per share was $4.54 and dividend per share was $2.54. The dividend per share was $4.54 and retained earnings per share was $2.54.
On June 17th, 2016 Walmart stock had a price of $71.30, a P/E ratio of 15.7, and a dividend yield of 2.81%. Which of the following statements is correct? The dividend per share was $2 and retained earnings per share was $2.54. The earnings per share was $2.54 and dividend per share was $2. The earnings per share was $4.54 and dividend per share was $2.54. The dividend per share was $4.54 and retained earnings per share was $2.54.
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
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Transcribed Image Text:On June 17th, 2016 Walmart stock had a price of $71.30, a P/E ratio of 15.7, and a dividend yield
of 2.81%. Which of the following statements is correct?
The dividend per share was $2 and retained earnings per share was $2.54.
The earnings per share was $2.54 and dividend per share was $2.
The earnings per share was $4.54 and dividend per share was $2.54.
The dividend per share was $4.54 and retained earnings per share was $2.54.
Expert Solution
Step 1
Earnings per share means amount of earning attributable to each share in the business. P/E ratio is ratio between share price and earnings per share. Dividend yield shows ratio between dividend per share and share price.
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