No-Growth Industries pays out all of its earnings as dividends
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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%?
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This solution provides a complete computation of the given accounting problem formatted in Excel.
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- MBA, Indian Institute of Finance
- Bsc, Madras University
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