A hypothetical corporation, Extended Powergrid, Inc., currently has 3,500,000 outstanding shares of common stock. On November...

 

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A hypothetical corporation, Extended Powergrid, Inc., currently has 3,500,000 outstanding shares of common stock. On November 30, it declared a 25 cent dividend with a date of record of December 23, which happens to be a Friday. The stock is trading at $37.75 per share just before the ex-divided date. The firm has a net income of $35 million for the year, and it paid 25 cent dividends per share each quarter. Using the expected stock price on the ex-dividend date, what is the firm's price-to-earnings ratio? A hypothetical corporation, Extended Powergrid, Inc., currently has 3,500,000 outstanding shares of common stock. On November 30, it declared a 25 cent dividend with a date of record of December 23, which happens to be a Friday. The stock is trading at $37.75 per share just before the ex-divided date. The firm has a net income of $35 million for the year, and it paid 25 cent dividends per share each quarter. Using the expected stock price on the ex-dividend date, what is the firm's price-to-earnings ratio?

Answer rating: 100% (QA)

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