Digital Publishing has a share price of $28, retained earnings of $0.60 per share, and a dividend yield of 5 percent. What is Digital's price-earnings ratio?
A)24
B)16
C)14
D)12

Question

Quizplus · Accepted Answer

To calculate the price-earnings ratio, we need to divide the stock price by the earnings per share. However, the question does not provide us with the earnings per share. Instead, it gives us the retained earnings per share, which is not the same as the earnings per share. Therefore, we cannot calculate the price-earnings ratio with the given information. None of the answer choices is correct.

Digital Publishing Has a Share Price of $28, Retained Earnings