A stock has a required return of 15 percent, a constant growth rate of 10 percent, and
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A stock has a required return of 15 percent, a constant growth rate of 10 percent, and a dividend payout ratio of 50 percent. What should the stock's P/E ratio should be?
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a. 3.0 b. 4.5 C. 9.0 d. 11.0
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