A small company is started up that makes blankets. The company sells a total 4,000 shares at \( \$ 20 \) each to raise money to start the business. At the end of the year, the company makes \( \$ 28,000 \) in profits and pays out \( \$ 8,000 \) in dividenc Complete parts (a) through (f) below. (d) What is the PE ratio? The PE ratio is 2.857 . (Simplify your answer. Round to three decimal places as needed.) (e) What is the dividend in dollars per share? The dividend per share is \( \$ \square \) (Simplify your answer. Do not include the \( \$ \) symbol in your answer. Round to two decimal places as needed.)

To find the dividend per share, we'll divide the total dividends paid by the number of shares issued. Here, the company pays out \( \$ 8,000 \) in dividends for \( 4,000 \) shares. Dividend per share = Total dividends / Number of shares = \( 8,000 / 4,000 = 2.00 \) So, the dividend per share is 2.00. Now that you have this figured out, let's dive into a little more knowledge about dividends and their significance in the business world! Dividends can serve as a signal from a company's board of directors to the shareholders regarding the viability of the company’s financial health. A consistent or growing dividend pays testament to a company's ongoing profitability and commitment to sharing its success with shareholders. Many investors appreciate regular dividend payments as a source of income or as an indicator of a solid investment! Furthermore, it's fun to note that companies can be categorized into two types: growth stocks and income stocks. Growth stocks typically reinvest their profits to fuel expansion and may not pay dividends at all. In contrast, income stocks focus on returning profits to shareholders through dividends. Knowing how dividends can affect your investment strategy could be essential to building your portfolio!