Question
Coco Corporation has just paid dividends of $3 per share. The earnings per share for the company was $5. If you believe that the appropriate
Coco Corporation has just paid dividends of $3 per share. The earnings per share for the company was $5. If you believe that the appropriate discount rate is 10 percent and the long-term growth rate in dividends and earnings is 6 percent, then a fair P/E ratio is:
A. 8
B. 10
C. 15
D. 25
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
