P/E Ratios. No-Growth Industries pays out all of its earnings as dividends. It will pay its next

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P/E Ratios. No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 12 percent.

a. What is the price-earnings ratio of the company?

b. What would the P/E ratio be if the discount rate were 10 percent?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 05, 2024 02:02 AM

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P/E Ratios. No-Growth Industries pays out all of its earnings as dividends. It will pay its next

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Study Guide To Accompany Fundamentals Of Corporate Finance

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