If a $22 per share stock has a P/E ratio of 12 and pays out 40 percent of its profits in dividends,
(a) How much profit is it earning per share?
Instructions: Enter your response rounded to two decimal places.
$
(b) How large is its dividend?
Instructions: Enter your response rounded to two decimal places.
$
(c) What is the implied rate of return?
Instructions: Enter your response as a percent rounded to the nearest two decimals.
%