Jones Company earns $6 per share. Today the stock is selling at $48. The company pays an annual dividend of $.83. Calculate (A)the price-earnings ratio and (B)the yield on the stock (to the nearest tenth percent).

Name: Jones Company earns $6 per share. Today the stock is selling at $48. The company pays an annual dividend of $.83. Calculate (A)the price-earnings ratio and (B)the yield on the stock (to the nearest tenth percent).
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Question

Quizplus · Accepted Answer

A. $48/$6 = 8; B. $.83/$48 = 1.7%.

Jones Company Earns $6 Per Share