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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 Preview

    (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 ...

    Solution Summary

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

    $2.19

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