Thomas Publishing Has a Price of $20 a Share,outstanding Shares

question 152

Multiple Choice

Thomas Publishing has a price of $20 a share,outstanding shares of 2.5 million,retained earnings of $1 million dollars,and a dividend yield of 2 percent.It has a price to earnings ratio of

• A)50, which is high by historical standards.
• B)50, which is low by historical standards.
• C)25, which is high by historical standards.
• D)25, which is low by historical standards.

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