Two firms a and b have identical price earnings ratio. We know that As stock price is
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Question:
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Two firms a and b have identical price earnings ratio. We know that As stock price is trading at $200/share; net income amounts to $20 billion a year; and the number of shares of A outstanding amounts to 2 billion. On the basis of this information we conclude that Bs earnings yield amounts to:
a. 10.0%
b. 5.0%
c. 4.0%
d. 0.5%
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