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A company reinvests 60 percent of its earnings in the firm. Next years dividend is projected to be $2.50 per share. The discount rate is

A company reinvests 60 percent of its earnings in the firm. Next years dividend is projected to be $2.50 per share. The discount rate is 15 percent and the grown rate is 10 percent. What is the price-earnings ratio?

A) 6.7

B) 8.0

C) 12.0

D) 16.7

E) 20.0

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