Question
SLYMN Enterprise has P/E ratio of 12 and a dividend payout ratio of 40%. If its equity cost of capital is 16%, what growth rate
SLYMN Enterprise has P/E ratio of 12 and a dividend payout ratio of 40%. If its equity cost of capital is 16%, what growth rate is its P/E ratio consistent with?
a. 8%
b. 9%
c. 10%
d. 11%
please show all the working on how you derived to the solution and make sure the answer is 100% correct.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
