What is the price-earnings ratio of the company what would


No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 12%.

a. What is the price-earnings ratio of the company?

b. What would the P/E ratio be if the discount rate were 10%?

Dividend per share....... $4.00 
Discount rate.......12.00%
Discount rate (b) ....... 10.00%

Solution Preview :

Prepared by a verified Expert
Managerial Accounting: What is the price-earnings ratio of the company what would
Reference No:- TGS01249689

Now Priced at $12 (50% Discount)

Recommended (97%)

Rated (4.9/5)