Queen City Sausage stock is selling at $40 per share, it has retained earnings of $2.00 per share and dividends of $.50 per share. What is the price-earnings ratio and what is the dividend yield?
A) 20, 1.25 percent
B) 20, 6.25 percent
C) 16, 1.25 percent
D) None of the above is correct.
Correct Answer:
Verified
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