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:

Departmental Overhead Cost Report

A document or statement that summarizes the indirect costs incurred by different departments within a company.

Indirect Labor Costs

Expenses related to employees that cannot be directly linked to the production of goods or services, such as maintenance staff and management.

Selling Expense

The costs associated with distributing, marketing, and selling a product or service.

Budget Reports

Budget reports are financial documents that compare actual financial results with the budgeted amounts for a given period, often used for tracking performance and planning.