Should firm that pay higher dividend have higher share value

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Reference no: EM131486945

Question: 1. If a firm has a PIE ratio of 12 and a profit margin on sales of 6 percent, what is its price-to-sales (P/S) ratio likely to be?

2. If a firm is expected to have a profit margin of 8 percent but trades at a price-to sales ratio of 25, what inferences would you make?

3. Should a firm that pays higher dividends have a higher share value?

Reference no: EM131486945

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