Question
2. Suppose you buy a stock with $10 today. You sell it with $15 in a year. In this year, it gives you $2 as
2. Suppose you buy a stock with $10 today. You sell it with $15 in a year. In this year, it gives you $2 as the dividend. What is the dividend yield ratio here? What is your capital gain from this stock? If earnings of this firm are $5000 today and the firms have 100 shares outstanding today, what is the P/E ratio today (P/E ratio is the ratio of prices to earnings per share.)? (
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
