solution

solution.

Your family would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year. Based on the data below, what is the company P/E ratio?

Annual earnings $ 100,000

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Shares of stock 10,000

Corporate assets $1,500,000

Corporate liabilities $ 800,000

Cash dividends (annual) $ 5,000

Market price of stock $ 35

Growth rate 8 percent

a) 3.00

b) 2.33

c) 0.23

d) 3.50

Your family would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap
had the following figures for the past year. Based on the data below, what is the dividend payout
ratio
of the company?
Annual earnings $ 100,000
Shares of stock 10,000
Corporate assets $1,500,000
Corporate liabilities $ 800,000
Cash dividends (annual) $ 5,000
Market price of stock $ 35
Growth rate 8 percent
a) 5.0
b) 2.5
c) 0.5
d) 0.05

solution

 
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