Question: Chapter 13 Practice Test Question 20 P/E and Growth Daisy Pixie Stix pays out 35% of its earnings as dividends. The firm has been earnings

Chapter 13 Practice Test Question 20 P/E and Growth Daisy Pixie

Chapter 13 Practice Test Question 20 P/E and Growth Daisy Pixie Stix pays out 35% of its earnings as dividends. The firm has been earnings $0.18 cents per dollar of equity invested in the firm and investors require a 12.25% return. The last annual earnings were $4.00 per share. What is the P/E ratio of the stock? Multiple Choice 126.96 63.64 139.30 72.31

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