20

18

The constant growth dividend discount model (DDM) is valid only when Multiple Choice growth rate is greater than or equal to the required return growth rate is less than or equal to the required return growth rate is greater than the required return growth rate is less than the required return The market capitalization rate on the stock of Aberdeen Wholesale Company is 7%. Its expected ROE is 9%, and its expected EPS is $4. If the firm's plowback ratio is 50%, its P/E ratio will be Multiple Choice 20.00 13.33 40.00 21.83