Question: 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

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

Step by Step Solution

★★★★★

3.38 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Dividend pay out ratio Dividend per share Earning per share 20 Di... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-F-F-M (1174).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

For the three probability distributions shown, rank each distribution from lowest to highest in terms of the sample size required for the distribution of the sample mean to be approximately normally...

Company Y has 3 million ordinary shares in issue with a carrying value of RM5 million. On 1 June 2020, the company, in wanting to raise funds needed to expand its business, issued 2 million ordinary...

The dividend payout ratio equals dividends paid divided by earnings. How would you expect this ratio to behave during a recession? What about during an economic boom?

A company with a high dividend payout ratio is a better investment than a company with a low dividend payout ratio. Do you agree? Explain.

franchise A and B balance sheets how can i answer these A,B,C,D,E questions? B ,questions, Franchise A and B which one is better, which one you want to invest and explain why ?? MGT200 MANAGEMENT...

X Ltd is a company listed on the stock exchange. An extract from the profit and loss account of X Ltd for the year ended 31st May 2015 is shown below. 000 Operating profit 986.7 Interest payable...

1) Home Depot and Lowes have similar gross margins (~34%) however Home Depot's operating margin has increased significantly over the time period presented in the Excel file. How do you explain this...

Home Depot and Lowes have similar gross margins (~34%), however, Home Depot's operating margin has increased significantly over the time period presented in the excel file. How do you explain this...

entrepenuerehip not op 7. Advise the Board of two alternative approaches to strategy which you consider Company Maju Bersama could use in the development of the Asian markets. Explain why you...

Examine the return on equity (ROE) of borth firms in the excel file. What is driving the variation of returns to shareholders between the firms? You should break this down along two dimensions;...

Focusing on the last three years reported in the excel file, Home Depot's ROE increased significantly. While the firm did increase its leverage (debt), this is not the sole reason for the increase in...

A and B are two separate reservoirs of water. Capacity of reservoir A is double the capacity of reservoir B. Both the reservoirs are filled completely with water, their inlets are closed and then the...

The following was occurred prior to issuance of IFRS16 in 2016: Large transportation companies with large fleets need to look at the real impact on their business, according to NST on 1 March 2015. A...

Behaving in a trusting, authentic, and moral manner will definitely result in leadership opportunities and greater career success. True / False Question True False

1. Set up and solve a differential equation that models the following situation: An aquarium holds 5000 gallons of water. It is maintained with a pumping system that pumps in 100 gallons of water per...

Consider a country with zero capital account balance. It is a net lender during the period in which the nation has a financial account __, and/or a current account ___.

4. The Unknown Sample Solution will contain between 40% and 70% soluble Chloride lon in grams. Assuming a initial mass of 0.2 grams of unknown sample in solution and 0.2 M solution of Silver Nitrate...

Consider the following proposed extension to an AVLTree class. T is any type. Wed like to add a method T firstAfter(T v) that, given a value v, returns the least element of the set that is v. If no...

Central Purchasing Ltd. (CPL) owns the building it uses; it had an original cost of $815,000 and a net book value of $250,000 as of 1 January 20X2. On this date, the building was sold to a real...

On December 30, 2010, Chang Co. sold a machine to Door Co. in exchange for a noninterest-bearing note requiring ten annual payments of $10,000. Door made the first payment on December 30, 2010. The...

Meghan Selzer has prepared the following list of statements about the general ledger. 1. The general ledger contains all the asset and liability accounts, but no stockholders equity accounts. 2. The...

Selected transactions from the journal of Kati Tillman, investment broker, are presented below. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31,2015....

The T-accounts below summarize the ledger of Santana Landscaping Company at the end of its first month of operations. Instructions (a) Prepare the complete general journal (including explanations)...

M7 Project 1 Chang Dental Read the instructions and the attached Excel spreadsheet thoroughly before starting the project! Objectives: 1. Perform a qualitative analysis on a capital budgeting...

this is the full question How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty. How much does each company...