A stock listing contains the following information: P/E 17.5,closing price 33.10,dividend .80,YTD% chg 3.4,and net chg of -.50.Which of the following statements are correct given this information?
I.The stock price has increased by 3.4% during the current year.
II.The closing price on the previous trading day was $32.60.
III.The earnings per share are approximately $1.89.
IV.The current yield is 17.5%.

Question

Quizplus · Accepted Answer

The stock price has increased by 3.4% during the current year (I is correct). The earnings per share can be calculated as $33.10 / 17.5 = $1.89 (III is correct). The closing price on the previous trading day was $33.10 - $0.50 = $32.60 (II is incorrect). The current yield is calculated as dividend/price, which is $0.80/$33.10, not 17.5% (IV is incorrect).

A Stock Listing Contains the Following Information: P/E 17