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Calculating EPS, Dividend per share and Book value

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A stock sells at $15 per share.
(a) What is the EPS for the company if it has a P/E ratio of 20?
(b) If the company's dividend yield is 5 percent, what is its dividend per share?
(c) What is the book value of the company if the price-to-book ratio is 1.5 and it has 100,000 shares of stock outstanding?

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Solution depicts the steps to calculate EPS, dividend per share and book value in the given case.

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(a)What is the EPS for the company if it has a P/E ratio of 20?

Market price of stock=$15
P/E Ratio=20

P/E=Price/EPS
Plug in the values of various ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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