Answer:
a. 3.06%
b. 13.04
Explanation:
The computation is shown below:-
a. Annual dividend yield = Annual dividend ÷ Current stock price
= $2.75 ÷ $90
= 3.06%
b. P/E ratio = Market price ÷ Earning per share
= $90 ÷ $6.9
= 13.04
where, EPS = $2.75 ÷ 40%
= $6.9
We simply applied the above formula and the same is to be considered
so that the correct answer could come