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A firm has current earnings of $3.00 and it pays 60% of earnings out as dividends. The firm's dividend growth rate is expected to be

A firm has current earnings of $3.00 and it pays 60% of earnings out as dividends. The firm's dividend growth rate is expected to be 5% per year indefinitely. The required return on equity is 15%. Calculate the firm's justified forward and trailing P/E ratios.

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