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olya-2409 [2.1K]
3 years ago
8

Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 1

6.9 times, what is the stock price
Business
1 answer:
Verizon [17]3 years ago
8 0

Answer:

Stock price=$128.44

Explanation:

Calculation for stock price

First step is to calculate for dividend payout ratio using this formula

Dividend payout ratio=Dividend payout/Earnings

Let plug in the formula

Earnings=($1.90/0.25)

Earnings=$7.6

Now let calculate for PE ratio using this formula

PE ratio=Stock price/EPS

Let plug in the formula

Stock price=$7.6*16.9times

Stock price=$128.44

Therefore Stock price will be $128.44

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Blue Corporation had the following 2017 income statement. Revenues $102,000 Expenses 65,000 $37,000 In 2017, Blue had the follow
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3 years ago
We assume that the representative consumer's preferences exhibit the properties that
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Answer:

c. consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundles.

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2 years ago
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Dmitriy789 [7]

Answer:

0.4 or 40%

Explanation:

The formula for Contribution Margin Ratio is:

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7 0
2 years ago
In order to provide drinking water as part of its 50-year plan, a west coast city is considering constructing a pipeline for imp
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While the smaller pipe cost $65million + $100million = $165million then plus the pumping cost which is equally higher than the big pipe cost . Already there is a difference in cost(minus pumping cost)= $165-115= $50million.

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So now with interest rate of 8% you'll see that much capital is used in the smaller pipe , so if both pipe system receive interest rate of 8%, the smaller pipe will have more interest than the bigger.

4 0
3 years ago
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