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What is the price earnings ratio of the company

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No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 12%.

a. What is the price-earnings ratio of the company?

b. What would the P/E ratio be if the discount rate were 10%?

Dividend per share....... $4.00 
Discount rate.......12.00%
Discount rate (b) ....... 10.00%

Reference no: EM13940378

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