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QUESTION 25 Assuming that Ska Companys cost of equity capital is 14% and it expects to grow earnings at a rate of 8% per year,

QUESTION 25

  1. Assuming that Ska Companys cost of equity capital is 14% and it expects to grow earnings at a rate of 8% per year, we would expect Skas P/E ratio to be:

    a.

    4.5

    b.

    14

    c.

    8

    d.

    16.7

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