A stock that has a price of $20 per share, earnings per share of $2.00, and a dividend of $1.50 will have A) a PE ratio of 20/1.50. B) a yield of 7.5 percent. C) a yield of 12 percent. D) a PE ratio of 1.333. ANSWER: B
A) a PE ratio of 20/1.50. B) a yield of 7.5 percent. C) a yield of 12 percent. D) a PE ratio of 1.333.