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Calculate the justified forward P/E ratio for a company with the following characteristics: Dividend payout ratio = 40% Dividend growth rate = 3% Cost

Calculate the justified forward P/E ratio for a company with the following characteristics: Dividend payout ratio = 40% Dividend growth rate = 3% Cost of equity = 8% What is the justified forward P/E ratio? If the company's management decides to increase the dividend payout ratio to 50%, what is the new justified forward P/E ratio?

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