Question
If a company has an earnings retention ratio of 70%, earnings are growing at 8% per annum, and investors' required rate of return is 10%,
If a company has an earnings retention ratio of 70%, earnings are growing at 8% per annum, and investors' required rate of return is 10%, the P/E of the stock is closest to: Group of answer choices 15.0. 5.6. 11.0.
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Get StartedRecommended Textbook for
Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
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