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:

Federal Deficits

The shortfall where the government's expenditures exceed its revenues within a specific fiscal year.

Interest Payments

The regular payments made to lenders as compensation for the money borrowed, typically expressed as a percentage of the principal sum.

Debt Ceiling

A limit on the total amount of money the federal government can legally borrow.

Defense Spending

Government expenditure on military and defense-related activities, including salaries, equipment, operations, and research and development.