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Blue Crab Co is a constant - growth company that pays out 5 0 percent of its earnings as dividends and is expected to grow

Blue Crab Co is a constant-growth company that pays out 50 percent of its earnings as dividends and is expected to grow at 4.66 percent. The company has a required return of 10.24 percent. The last year's earnings were $1.10 per share. Calculate a justified P/E of the company.

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