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Please answer all parts thank you in advance! :) Problem 9-03 Currently, the dividend-payout ratio (D/E) for the aggregate market is 60 percent, the required
Please answer all parts thank you in advance! :)
Problem 9-03 Currently, the dividend-payout ratio (D/E) for the aggregate market is 60 percent, the required return (K) is 13 percent, and the expected growth rate for dividends (9) is 4 percent. Round your answers to two decimal places. a. Compute the current earnings multiplier. x b. You expect the D/E payout ratio to decline to 50 percent, but you assume there will be no other changes. What will be the P/EStep by Step Solution
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