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A P/E multiple could be high relative to the S&P 500 Index because its high growth rate justifies it. You notice a stock that has
A P/E multiple could be high relative to the S&P 500 Index because its high growth rate justifies it. You notice a stock that has an assumed growth rate of 4.85% with a dividend payout ratio of 49.3% and a required return of 12.07%. What is the justified forward P/E for this company? State your answer with two decimal places (13.21).
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