1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. Financial Ratios
5. Price-to-Earnings (P/E) Ratio
6. 455039

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

No-Growth Industries pays out all of its earnings as dividends. It will pay its next $3 per share dividend in a year. The discount rate is 12%.

a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

P/E ratio =

b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.)

P/E ratio =