Answered: One company had a stock price of $45…

One company had a stock price of $45 per share, earnings per share of $0.75, and dividends per share of $0.20. What is the company's price/earnings ratio? а. 1.7 b. 60.0 c. 225.0 d. 81.8

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

One company had a stock price of $45 per share,
earnings per share of $0.75, and dividends per share of
$0.20. What is the company's price/earnings ratio?
а. 1.7
b. 60.0
C. 225.0
d. 81.8

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