If a 25 per share stock has a pe ratio of 20 and pays out


If a $25 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends,

(a) How large is its dividend?

Instructions: Enter your response to two decimal places.

$

(b) What is the implied rate of return?

Instructions: Enter your response as a percent to the nearest whole number.

%

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Business Economics: If a 25 per share stock has a pe ratio of 20 and pays out
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