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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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