What is the expected stock price of company who has $5.00 earnings per share,a dividend payout ratio of 0.8,and a P/E ratio of 12?
A) $48.00
B) $60.00
C) $12.00
D) $9.60
E) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

The expected stock price can be calculated using the formula:

Expected Stock Price = (Earnings Per Share * P/E Ratio) / Dividend Payout Ratio

Plugging in the given values:

Expected Stock Price = ($5.00 * 12) / 0.8 = $75

Therefore, the correct answer choice is B: $60.00.

What Is the Expected Stock Price of Company Who Has