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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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