Suppose the stock of a company has constant expected dividends (g = 0) and a P/E ratio

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Suppose the stock of a company has constant expected dividends (g = 0) and a P/E ratio of 10. The plow-back ratio is 0.5. The market risk premium is 5% and the risk free rate is positive.

What can you say about the beta of the company's stock?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jul 07, 2023 01:39 AM

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Suppose the stock of a company has constant expected dividends (g = 0) and a P/E ratio

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Corporate Finance A Focused Approach

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