The stock of North American Dandruff Company is currently selling at $50 per share. The firm pays a dividend of $2.50 per share. a. What is the dividend yield? b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio? If the components of the price/earnings ratio are inverted, the resulting percentage is referred to as which of the following? a. Book value per share. b. Dividend yield ratio. e. Capitalization rate. d. Multiple. Vixi Corporation had a net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10 par stock). The market price per share as of December 31, 2015, was $33.50. Calculate the price-earnings ratio for 2015.

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Chapter10: Stockholder's Equity
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Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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The stock of North American Dandruff Company is currently selling at $50 per share. The firm pays a
dividend of $2.50 per share. a. What is the dividend yield? b. If the firm has a payout rate of 50 percent, what
is the firms P/E ratio? If the components of the price/earnings ratio are inverted, the resulting percentage is
referred to as which of the following? a. Book value per share. b. Dividend yield ratio. e. Capitalization rate.
d. Multiple. Vixi Corporation had a net income of $401,000 in 2015. The company's Common Stock account
balance all year long was $267,000 ($10 par stock). The market price per share as of December 31, 2015,
was $33.50. Calculate the price-earnings ratio for 2015.
Transcribed Image Text:The stock of North American Dandruff Company is currently selling at $50 per share. The firm pays a dividend of $2.50 per share. a. What is the dividend yield? b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio? If the components of the price/earnings ratio are inverted, the resulting percentage is referred to as which of the following? a. Book value per share. b. Dividend yield ratio. e. Capitalization rate. d. Multiple. Vixi Corporation had a net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10 par stock). The market price per share as of December 31, 2015, was $33.50. Calculate the price-earnings ratio for 2015.
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