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    Exam 21: Rents, Profits, and the Financial Environment of Business
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    A Stock That Has a Price of $20 Per Share
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A Stock That Has a Price of $20 Per Share

Question 440

Question 440

Multiple Choice

A stock that has a price of $20 per share, earnings per share of $2.00, and a dividend of $1.50 will have


A) a PE ratio of 20/1.50.
B) a yield of 7.5 percent.
C) a yield of 12 percent.
D) a PE ratio of 1.333.

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