Question
Consider company XYZ with the following information: Stock price: 320; Earnings per share: 20; Dividends per share: 8. A competitor trades at a P/E multiple
Consider company XYZ with the following information: Stock price: 320; Earnings per share: 20; Dividends per share: 8. A competitor trades at a P/E multiple of 15.
- What is company XYZ's payout ratio?
- What is company XYZ's dividend yield,DY?
- What is company XYZ's P/E ratio?
- Based on the P/E multiple of the competitor, what would be the stock price of company XYZ?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
