A public listed company has recently declared a dividend of $0.20 per share and maintains a constant dividend payout rat
Posted: Mon Mar 07, 2022 8:43 am
A public listed company has recently declared a dividend of $0.20 per share and maintains a constant dividend payout ratio of 40%. The market value of each share is $4.60 cum div and the nominal value of each share is $4.00.
The company pays 20% tax on its profits.
What is the price earnings ratio (ex div) of the company?
A. 8.0 times
B. 8.8 times
C. 9.2 times
D. 11.0 times
The company pays 20% tax on its profits.
What is the price earnings ratio (ex div) of the company?
A. 8.0 times
B. 8.8 times
C. 9.2 times
D. 11.0 times