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You are an investor in a profitable, publicly-held company that has traditionally paid dividends. If you...

You are an investor in a profitable, publicly-held company that has traditionally paid dividends. If you are still interested in dividends as a form of return and are evaluating whether to continue your investment in this company - the LEAST important question below is?

a.

What is the company’s P/E ratio and how does it compare to the industry average?
b.

What is the times interest earned ratio?
c.

Is the dividend payment policy stable?
d.

What is diluted earnings per share performance as compared to last year?
e.

Is the dividend yield comparable to earnings on other investments that may be made?
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Answer #1

Answer:

Option (A)  What is the company’s P/E ratio and how does it compare to the industry average?

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