Question
A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of $2 per share were paid in the current
A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of $2 per share were paid in the current year and the company has a dividend payout ratio of 40%. The price-earnings ratio of the company is
- a. 2.5
- b. 4
- c. 10
- d. 50
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
