A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of

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A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of $2 per share were paid in the current year and the company has a dividend payout ratio of 40%. The price-earnings ratio of the company is

a. 2.5
b. 4
c. 10
d. 50

Related Book For answer-question

Introduction to Derivatives and Risk Management

ISBN: 978-1305104969

10th edition

Authors: Don M. Chance

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Posted Date: Jan 05, 2021 03:10 PM

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A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of

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Introduction to Derivatives and Risk Management

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