What is implied rate of return-how large is dividend

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Reference no: EM13831269

If a $25 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends,

(a) How large is its dividend?

Instructions: Enter your response to two decimal places.

(b) What is the implied rate of return?

Instructions: Enter your response as a percent to the nearest whole number.

Reference no: EM13831269

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