Considering that a firm has a PE ratio of 71.4 and an EPS of 0.1, what is the price of a stock that pays an annual dividend of $1.00?

A) 7.14
B) 71.4
C) 0.714
D) 0.0714

PE Ratio

The Price to Earnings Ratio, a metric used to evaluate the valuation of a stock by dividing its current share price by its earnings per share.

EPS

Earnings Per Share, a company's profit divided by its number of outstanding shares of stock, indicating the company's profitability.

Stock Price

This is the current price at which a share of a company is bought or sold in the market.