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Calculate the PER for the Following Company

Question 13

Multiple Choice

Calculate the PER for the following company. It is expected to maintain a payout ratio of 40 per cent of earnings. The appropriate discount rate for this risk class is 10 per cent and the expected growth rate in earnings and dividends is 5 per cent.


A) 2.67
B) 8.0
C) 6.67
D) 5.0

Correct Answer:

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