The following was the result of a regression of P/E ratios on growth rates, betas, and payout ratios, for stocks listed on the Value Line Database, in April 1993 P/E = 18.69 + 0.0695 GROWTH -0.5082 BETA - 0.4262 PAYOUT. Thus, a stock, with an earnings growth rate of 20%, a beta of 1.15, and a payout ratio of 40%, would have had an expected P/E ratio of ??? 17.95 20.57 18.01 16.77