IUlawyer5218 IUlawyer5218

05-06-2023
Business

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A company has 100,000 outstanding common shares with a market value of $20 per share. Dividends of $2 per share were paid in the current year and the company has a dividend payout ratio of 40%. The price-earnings ratio of the company is
A. 2.5
B. 4
C. 10
D. 50

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