-If Dawson Corporation's Common Shares Have a Price-Earnings Ratio of upcoming

question 47

Multiple Choice

$\begin{array}{l}\text { The Dawson Corporation projects the following for the upcoming year: }\\\\\begin{array} { | l | r | } \hline \text { Earnings before Interest and Taxes } & \text { \$35 million } \\\hline \text { Interest Expense } & \text { \$5 million } \\\hline \text { Preferred Shares Dividends } & \$ 4 \text { million } \\\hline \text { Common Shares Dividend Payout Ratio } & 30 \% \\\hline \begin{array} { l } \text { Average Number of Common Shares } \\\text { Outstanding }\end{array} & 2 \text { million } \\\hline \text { Effective Corporate Income Tax Rate } & 40 \% \\\hline\end{array}\end{array}$
-If Dawson Corporation's common shares have a price-earnings ratio of eight,what would be the market price per share,rounded to the nearest dollar?

• A) $56.
• B) $68.
• C) $72.
• D) $125.

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