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gnomes r us just paid a dividend of $1.91 per share. the company has a dividend payout ratio of 30 percent. if the pe ratio is 17 times, what is the stock price?

Respuesta :

The stock price of gnomes r us is $108.23.

What is the stock price?

The dividend pay-out ratio is the ratio of dividend to earnings per share.

Dividend pay-out ratio = dividend / earnings per share

30% = 1.91 / earnings per share

Earnings per share = 1.91 / 0.3 = 6.37

The PE ratio is the ratio of price to earning per share.

PE ratio = price / earnings per share

17 = price / 6.37

price = 17 x 6.37

Price = $108.23

To learn more about stock price, please check: https://brainly.com/question/18371480

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