Asked by
Destin Jacobs
on Oct 15, 2024
Verified
A company has earnings per share of $9.60.Its dividend per share is $0.50,its market price per share is $110,and its book value per share is $96.Its price-earnings ratio equals:
A) 1.15.
B) 0.87.
C) 19.2.
D) 10.0.
E) 11.46.
Price-Earnings Ratio
A valuation metric for a company's current share price relative to its per-share earnings, indicating how much investors are willing to pay for each dollar of earnings.
Earnings Per Share
A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.
Market Price
The present cost at which a service or asset is available for purchase or sale.
- Gain an understanding of how to calculate dividend yield and price-earnings ratio, and recognize their relevance to investment decisions.
Verified Answer
AG
Learning Objectives
- Gain an understanding of how to calculate dividend yield and price-earnings ratio, and recognize their relevance to investment decisions.