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A firm has an expected dividend payout ratio of 60% and an expected future growth rate of 9%. What should the firm's fundamental price-toearnings (P/E)
A firm has an expected dividend payout ratio of 60% and an expected future growth rate of 9%. What should the firm's fundamental price-toearnings (P/E) ratio be if the required rate of return on stocks of this type is 15%?
A. 5.0x.
B. 7.5x.
C. 10.0x.
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