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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?

Multiple Choice

6.7
8.0
12.0
16.7
20.0

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