P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.10 cents per dollar of equity invested in the firm and investors require a 8.00% return. The last annual earnings were $2.00 per share. What is the P/E ratio of the stock?

Answer rating: 100% (QA)

Heres how to calculate the PE ratio for Daisy Pixie Stix 1 Calculate the retained earnings per share ... View the full answer