Solved

Suppose a Firm's Price/earnings Ratio Is 10

Question 66

Multiple Choice

Suppose a firm's price/earnings ratio is 10.It expects to pay a dividend of $1.20 per share to maintain a 60% payout ratio.What is the firm's required return if its return on equity is 13.5%?


A) 14.10%
B) 13.20%
C) 12.30%
D) 11.40%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents