Value Line's estimated dividends on an index for next year are $2.00 while estimated earnings are $4.30. The expected spread between k and g is 4%.
(a) What is the P/E ratio?
(b) What is the estimated price for this index?

Question

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The Answer of Value Line's estimated dividends on an index for next year are $2.00 while estimated earnings are $4.30. The expected spread between k and g is 4%.
(a) What is the P/E ratio?
(b) What is the estimated price for this index?

Value Line's Estimated Dividends on an Index for Next Year