Question 21 (1 point) The discount rate on the stock of ABC is 9%. Its expected return on equity is 12%. If the firm plows back its earnings at the ratio of 40% (i.e. the dividend payout ratio is 60%) and its expected earnings per share is $5, its P/E ratio can be estimated by using the constant growth model to be Your answer must be in two digits with two decimals. Round off your answer to have only two decimals. That is, you answer must be in this format: XX.XX

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