Suppose that the S P 500 price earnings ratio is 17 5, the dividend payout ratio of the S P is 50 , and that you estimate a future growth of dividends of 7 What is E (r M ) COMPUTING E(rM) FROM MARKET P E 2 Current S P 500 P E 17 5 3 Dividend payout ratio 4 Growth rate of dividends 5 E(rm) 50 7 ...

Case 1 It is a trailing ratio given for P ...

Suppose that the S&P 500 price/earnings ratio is 17.5, the dividend payout ratio of the S&P is

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Suppose that the S&P 500 price/earnings ratio is 17.5, the dividend payout ratio of the S&P is 50%, and that you estimate a future growth of dividends of 7%. What is E (r_M)?

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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Suppose that the S&P 500 price/earnings ratio is 17.5, the dividend payout ratio of the S&P is

Question:

COMPUTING E(rM) FROM MARKET P/E 2 Current S&P 500 P/E 17.5 3 Dividend payout ratio 4 Growth rate of dividends 5 E(rm) 50% 7%

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Case 1 It is a trailing ratio given for P...View the full answer

Financial Modeling

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