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Take Rf=4%,E[RM]=8%. Gamma Corporation has a CAPM beta of 1.1 and its earnings are expected to grow at 2% per year. Gamma Corp pays out
Take Rf=4%,E[RM]=8%. Gamma Corporation has a CAPM beta of 1.1 and its earnings are expected to grow at 2% per year. Gamma Corp pays out 60% of its earnings. Investors who receive the dividend face a personal income tax rate of 20%. What is the P/E ratio of Gamma Corp
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