Question
P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.10 cents per dollar of equity
P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.10 cents per dollar of equity invested in the firm and investors require a 8.00% return. The last annual earnings were $2.00 per share. What is the P/E ratio of the stock?
Step by Step Solution
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Heres how to calculate the PE ratio for Daisy Pixie Stix 1 Calculate the retained earnings per share ...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
