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Options
-
5.92%
Correct answer
- B
0.0592%
- C
16.87%
- D
0.1687%
Why this is the answer
Earnings Yield is the inverse of the PE ratio and measures the earnings generated per unit of stock price. It is calculated as EPS divided by current stock price. Here, Earnings Yield = 32 ÷ 540 ≈ 0.0592, or 5.92%. The other options are incorrect due to decimal placement or calculation errors.
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