The stock listing for a company shows a P/E of 18, a dividend yield of 2.4% and a closing price of $23.76.What is the amount of dividends per share?

Question

Quizplus · Accepted Answer

First, we need to calculate the earnings per share (EPS) by dividing the closing price by the P/E ratio:
EPS = 23.76/18 = 1.32

Next, we can use the dividend yield to calculate the annual dividend per share:
Dividend Yield = Annual Dividend / Stock Price
2.4% = Annual Dividend / 23.76
Annual Dividend = 0.024 * 23.76 = 0.57024

Finally, we divide the annual dividend by the number of shares to find the amount of dividends per share:
Dividends per Share = Annual Dividend / Number of Shares
Since the problem does not provide the number of shares, we cannot calculate this value directly. However, we can see that the only answer choice that is close to our calculation of $0.57 is B: $0.57.

The Stock Listing for a Company Shows a P/E of 18