Question
A firm has an expected dividend payout ratio of 60 percent and an expected future growth rateof 7 percent. What should the firm's price-to- earnings
A firm has an expected dividend payout ratio of 60 percent and an expected future growth rateof 7 percent. What should the firm's price-to- earnings (P/E) ratio be if the required rate of return on stocks of this type is 15 percent?
a.5.0X
b.7.5X
c.10.0X
d.15.5X
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
