The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share. a. What is the dividend yield?b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio?

3.1% / 0.031

16

Explanation:

dividend yield =  dividend per share / share price

$2.50 / $80 = 0.031 = 3.1%

Payout ratio = dividend per share / earning per share = 50% = 0.5

$2.5 / earning per share = 0.5

earning per share = $2.5 / 0.5 = $5

P / E = Stock price / earning per share = $80 / $5 = 16

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

after cutting wages and benefits in order to increase profit .

apex~