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Oxon Ltd has ordinary shares in issue with a nominal value of $1. The dividend payout ratio is 20% and the gross dividend yield is 4%. The earnings per share is $0.60. What is the price/earnings ratio of the company?
A. 25·0 times
B. 13·8 times
C. 5·0 times
D. 1·8 times
E. None of the above
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