What is the firms p/e ratio

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Reference no: EM13305751

The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share.

a. What is the dividend yield?
b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio?

Solution
Problem 18-10
Instructions

Enter formulas to calculate the requirements of this problem.

Information
Stock price$80
Dividend$2.50

a. What is the annual dividend yield?

b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio?

Reference no: EM13305751

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