Assume the dividend payout ratio on the S&P 500 is 40 percent when the rate on long-term T-bonds is 9 percent,and investors demand an equity risk premium of 8 percent.If the growth rate of dividends is expected to be 10 percent,what is the price of the market index if the earnings expectation is $30?

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The Answer of Assume the dividend payout ratio on the S&P 500 is 40 percent when the rate on long-term T-bonds is 9 percent,and investors demand an equity risk premium of 8 percent.If the growth rate of dividends is expected to be 10 percent,what is the price of the market index if the earnings expectation is $30?

Assume the Dividend Payout Ratio on the S&P 500 Is