Elizabeth7361 Elizabeth7361

22-03-2024
Business

contestada

Suppose the cost of capital is 12% per year. Ever Green is a mature company fully financed by equity. It is estimated to have a stable growth rate 2% per year. It has a payout ratio 80 % . What would be the price - earnings ratio for Ever Green?
A) 12
B) 10
C) 8
D) 6|

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