Question
No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 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 $6 per share dividend in a year. The discount rate is 21%.
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 20%?(Round your answer to 2 decimal places.)
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
