A company releases the following information:
Number of shares (in thousands) = 8500
Dividend = $0.17
Dividend yield = 0.9%
Profit (in thousands) = $1700
a. Calculate the share price.
b. Calculate the market value of the firm (the total value of the firm's shares).
c. Calculate earnings per share and the P/E ratio.
d. Is this company expensive relative to its earnings?

Question

Quizplus · Accepted Answer

The Answer of A company releases the following information:
Number of shares (in thousands) = 8500
Dividend = $0.17
Dividend yield = 0.9%
Profit (in thousands) = $1700
a. Calculate the share price.
b. Calculate the market value of the firm (the total value of the firm's shares).
c. Calculate earnings per share and the P/E ratio.
d. Is this company expensive relative to its earnings?

A Company Releases the Following Information