3

Question 3 1 pts Market analysts expect the earnings per share of Shazza Inc to be $2.00 next year. The earnings per share are expected to grow at 5% p.a. forever and the firm typically retains 40% of its earnings. Analysts believe that this policy will continue in the foreseeable future. If investors require a return of 10%, the company's expected (or forward) price-to-earnings ratio will be closest to: 0 24.00. 12.00. O 8.00. 04.00.