No-growth industries pays out all of its earnings as


No-Growth Industries pays out all of its earnings as dividends. It will pay its next $5 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%?

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Financial Management: No-growth industries pays out all of its earnings as
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