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Estimate the new pe ratio for the firm if the risk-free

Urban Savings Bank is expected to have net income of $ 100 million and pay out dividends of $ 60 million next year. The firm is a stable growth firm and the market value of equity is currently $ 800 million. If you assume that the market is pricing the equity correctly today, estimate the new PE ratio for the firm if the risk-free rate increases by 1 percentage point?

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Chemistry: Estimate the new pe ratio for the firm if the risk-free

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