A stock has a required return of 15 percent, a constant growth rate of 10 percent, and
Question:
A stock has a required return of 15 percent, a constant growth rate of 10 percent, and a dividend payout ratio of 50 percent. What should the stock’s PE ratio be?
a. 3.0
b. 4.5
c. 9.0
d. 11.0
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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