Solution-What is the p-e ratio that investors are willing

What is the p-e ratio that investors are willing to pay

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Reference no: EM132996241

Problem 1: Company Z is currently priced at $42. They just reported earnings per share of $1.15. What is the P/E ratio that investors are willing to pay for a share of Company Z's stock?

a) 38.90
b) 38.40
c) 36.52
d) 40.10

Problem 2: A share of preferred stock pays a dividend of $0.20 annually. The required rate of return is 4%. What is the preferred stock's price per share?

a) $6
b) $5
c) $4
d) $7

Reference no: EM132996241

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What is the p-e ratio that investors are willing to pay

Reference no: EM132996241

Reference no: EM132996241

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