Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Can you please help with the question in the picture attached? The answer should be only one and I’m quite confused. Thank you!

Here are some metrics for company AAA:
=
Share price 100p, EPS = 8p,
Dividend per share = 4p, growth rate of dividends = 2%.
Identify the incorrect statement.
A. The P/E ratio = 12.5%.
B. The dividend yield = 4%.
C. The PEG ratio = 6.25
D. Dividend payout ratio = 50%.
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Transcribed Image Text:Here are some metrics for company AAA: = Share price 100p, EPS = 8p, Dividend per share = 4p, growth rate of dividends = 2%. Identify the incorrect statement. A. The P/E ratio = 12.5%. B. The dividend yield = 4%. C. The PEG ratio = 6.25 D. Dividend payout ratio = 50%.
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