Question: Under the following conditions, P 0 = D 1 based on payout ratio of 20% and EPS of $12 D 1 = payout ratio *
| Under the following conditions, P0= | |
| D1based on payout ratio of | 20% |
| and EPS of | $12 |
| D1= payout ratio * EPS | $2.40 |
| rs= | 12% |
| g = | 10% |
| P0= | $? |
| $100 |
| $120 |
| $140 |
| $160 |
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