Suppose for every dollar change in household wealth, consumption expenditures change by $0.05. If real household wealth declin
1 answer:
You might be interested in
Answer:
correct option is a) 24.87; 24.87
Explanation:
given data
spent = $15000
current earnings = $2.80 per share
stock currently sells = $75 per share
shares outstanding = 2,800
top find out
PE ratio
solution
first we get here dividend per share that is express as
dividend per share = ................1
dividend per share =
dividend per share = $5.3571
and price after dividend will be here as
price after dividend = stock currently sells - dividend per share ............2
price after dividend = $75 - $5.3571
price after dividend = $69.6429
so PE ratio will be
PE ratio is =
PE ratio is = 24.87
and
now we get share repurchased that is
shares repurchased = .......3
shares repurchased =
shares repurchased = 200
so EPS will be as
EPS is = 2.80 ×
EPS = 3.015
so PE ratio will be as
PE ratio is =
PE ratio is = 24.87
correct option is a) 24.87; 24.87