HW #4:

7. value: 1.00 points Problem 7-27 P/E Ratios (L04) No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 12%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio