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ABC, Inc. participates in the widget production industry. The widget production industry has a price to earnings ratio of 5. ABC, Inc. expects continued growth

ABC, Inc. participates in the widget production industry. The widget production industry has a price to earnings ratio of 5. ABC, Inc. expects continued growth to be 4%. Which of the following is correct?

ABC, Inc.s capitalization rate is 24%.

ABC, Inc.s discount rate is 20%.

ABC, Inc.s capitalization rate is 20%.

ABC, Inc.s discount rate is 16%.

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