Investors in Rance Electric 's stock require a return of 8 If the company simply earns the cost of capital on its new investments, what is the stock 's P E ...

Since the firm is earning only the 8 that investors require ...

Investors in Rance Electric's stock require a return of 8%. If the company simply earns the cost

Question:

Investors in Rance Electric's stock require a return of 8%. If the company simply earns the on its new investments, what is the stock's P/E?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...