No-Growth Industries pays out all earnings as dividends. The next share will pay out $3 per dividend
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Question:
No-Growth Industries pays out all earnings as dividends. The next share will pay out $3 per dividend in one year. Discount rate is 6%.
A. What is the company's price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
B. What would the P/E ratio be if the discount rate was 5%? (Round your answer to 2 decimal places.)
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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