Evaluating Stock as an Investment Flashcards

1
Q

What’s the computation for Price/Earnings Ratio?

A

Market price per share for common stock / earnings per share

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2
Q

What’s the computation for Divident Yield ?

A

Annual dividend per share / Market price per share

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3
Q

What’s the computation for Dividend Payout?

A

Annual dividend per share / Earnings per share

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