Ch11 Financial Planning Exercise 2 Question 1 of 4 Questions 1. 2. Check My Work o 11-4: Becoming an Informed Investor Chapter 11 Financial Planning Exercise 2 Assume that the following quote for Merck, a NYSE stock, appeared on August 1, 2012 (Wednesday) on Yahoo! Finance (http://finance.yahoo.com/q?s MRK&ql-0) Merck & Co. Inc. (MRK) NYSE 44.56 0.39(0.88%) 1:34PM EDT Prev Close: Open: Bid: Ask: ly Target Est: Beta: Next Earnings Date: 4. 44.17 Day's Range: 44.25-44.79 44.45 52wk Range: 29.47 45.17 5,345,943 44.63 x 1400 Avg Vol (3m): 15,788,300 135.74B 20.44 2.18 44.62 x 6900 Volume: 45.69 Market Cap: 0.43 P/E (ttm) N/A EPS (ttm): Div & Yield: 1.68 (3.80%) Given this information, answer the following questions a. At what price did the stock sell at the time of the quote? $44.56 b. What is the stock's price/earnings ratio? 20.44 What does that indicate? Round your answers to the nearest whole number. This means that investors are willing to pay more than $ for every $1 of 1 earnings per share that the company generated last year. C. What is the last price at which the stock traded on the prior trading day? $44.17 d. What's the stock's dividend yield? 3.80 % 1/2