Suppose a firms priceearnings ratio is 10 it expects to


Suppose a firm's price/earnings ratio is 10. It expects to pay a dividend of $1.20 per share to maintain a 60 percent payout ratio.

What is the firm's required return if its return on equity is 13.5 percent?

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Finance Basics: Suppose a firms priceearnings ratio is 10 it expects to
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