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Devlin Inc. has 250,000 shares of $10 par value common stock outstanding. For the current year, Devlin paid a cash dividend of $3.50 per share and had earnings per share of $4.80. The market price of Devlin's stock is $34 per share. Devlin's price/earnings ratio is
a. 2.08
b. 2.85
c. 7.08
d. 9.71
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Christine Purelis
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