The long run growth rate of dividends for this firm is 5


A firm follows a policy of paying out 50% of its earnings as dividends. Next year's earnings are expected to be $10 per share. The long run growth rate of dividends for this firm is 5%, and investors require a 15% rate of return on the stock. What is the firms p/e ratio?

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Basic Computer Science: The long run growth rate of dividends for this firm is 5
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