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    Fundamentals of Corporate Finance Study Set 7
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    Exam 7: Valuing Stocks
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    If a Stock's P/E Ratio Is 13
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If a Stock's P/E Ratio Is 13

Question 52

Question 52

Multiple Choice

If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%,what is the stock's current price?


A) $24.30
B) $18.00
C) $22.22
D) $40.50

Correct Answer:

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