Question
No-Growth Industries pays out all of its earnings as dividends. It will pay its next $2 per share dividend in a year. The discount rate
No-Growth Industries pays out all of its earnings as dividends. It will pay its next $2 per share dividend in a year. The discount rate is 10%.
a.What is the price-earnings ratio of the company?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.What would the P/E ratio be if the discount rate were 5%?(Round your answer to 2 decimal places.)
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
