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4 ) Suppose the cost of capital is 1 2 % per year. Ever Green is a mature company fully financed by equity. It is

4) Suppose the cost of capital is 12% per year. Ever Green is a mature company fully financed by equity. It is estimated to have a stable growth rate 2% per year. It has a payout ratio 80%. What would be the price-earnings ratio for Ever Green?
A)12 B)10 C)8 D)6

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