Oxon Ltd has ordinary shares in issue with a nominal value of $1 The dividend payout ratio is 20 and the gross dividend yield is 4 The earnings per share is $0 60 What is the price earnings ratio of the company A 250 times B 138 times C 50 times D 18 times E None of the above ...

Dividend pay out ratio Dividend per share Earning per share 20 Di ...

Oxon Ltd has ordinary shares in issue with a nominal value of $1. The dividend payout ratio

Question:

Oxon Ltd has ordinary shares in issue with a nominal value of $1. The payout ratio is 20% and the gross yield is 4%. The earnings per share is $0.60. What is the price/earnings ratio of the company?

A. 25·0 times
B. 13·8 times
C. 5·0 times
D. 1·8 times
E. None of the above

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...