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Use the Following Information to Obtain the Ratios Requested Below

question 127

Essay

Use the following information to obtain the ratios requested below.Where necessary,carry answers to one decimal place.
Dividends per share: $2.16
Market price per share: $48
Net income: $88,000
Average stockholders' equity: $625,000
Earnings per share: $1.56
a.Dividends yield = _____________%
b.Return on equity = _____________%
c.Price/earnings (P/E)ratio = __________times


Definitions:

Segmented Market

A market divided into groups according to customers’ different needs and problems.

Mass Market

Refers to the large, general group of consumers that products are aimed at, not tailored to specific niches.

Nondiscriminating Consumers

Customers who do not show preference or bias towards products based on brand, appearance, or other superficial factors, focusing instead on functionality or value.

Similar Needs

The comparable or identical requirements or desires of different customers or client segments.

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