Question
The stock of AMD Graphics Co. paid a dividend of $0.6 per share last year on earnings of $1.00 per share. The firms dividends and
The stock of AMD Graphics Co. paid a dividend of $0.6 per share last year on earnings of $1.00 per share. The firms dividends and earnings are expected to growth at 7% per year forever. Shareholders require a return of 10% on their investment. Assuming the payout ratio is constant, the justified leading P/E ratio is:
a. 20.0 b. 12.0 c. 12.8 d. 9.0 e. 8.6
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Introduction To Finance Markets Investments And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
14th Edition
0470561076, 9780470561072
