If a Stock's P/E Ratio Is 13

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

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Definitions:

Inverts

Informal term for invertebrates, which are animals that do not have a backbone or spinal column.

Longest Muscle

The Sartorius muscle, extending from the hip to the knee, recognized as the longest muscle in the human body.

Sartorius

The longest muscle in the human body, running from the hip to the knee, and aiding in flexing, abduction, and lateral rotation of the thigh.

Biceps Femoris

A muscle of the thigh located at the back of the leg, part of the hamstrings group, involved in knee flexion and thigh extension.