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On a Certain Day in February 2008, the Yahoo!Finance Website

Question 10

Multiple Choice

On a certain day in February 2008, the Yahoo!Finance website indicated that Gap, Inc. had a P/E ratio of 18.67. What was its implied earnings yield?


A) 18.67%
B) 5.1%
C) 5.4%
D) This cannot be calculated without knowing Gap's opportunity cost of capital.

Correct Answer:

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