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10.) You buy shares in a company that has a P/E ratio of 8. You expect no growth in earnings for the company. The company

10.) You buy shares in a company that has a P/E ratio of 8. You expect no growth in earnings for the company. The company pays no dividend. What is the expected long-term rate of return on your investment?

a. 5%

b. 15%

c. 22%

d. 10%

e. 12.5%

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