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Regression fundamental equation

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A firm practices a dividend payment policy of 60%. The equity has systematic risk factor of 1.50. If the firm's earnings growth rate is 5.0% and actual P/E is 16.0, what is the justified P/E using the regression fundamental equation = 10.5 +(2.5*Dividend payout ratio) + (-0.05)*Beta + (11.2*Earning growth rate)?

Reference no: EM132523740

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