Blue Ridge Enterprises has a dividend payout ratio of 0.6, is expected to grow at a rate of 4% per annum, and has shareholders who require a return of 8% per annum on their investment. What should be the price-earnings ratio of Blue Ridge Enterprises?

Blue Ridge Enterprises has a dividend payout ratio of 0.6, is expected to grow at a rate of 4% per annum, and has shareholders who require a return of 8% per annum on their investment. What should be the price-earnings ratio of Blue Ridge Enterprises?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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What should be the price earnings ratio of this financial accounting question?

Blue Ridge Enterprises has a dividend payout ratio of 0.6,
is expected to grow at a rate of 4% per annum, and has
shareholders who require a return of 8% per annum on
their investment. What should be the price-earnings ratio
of Blue Ridge Enterprises?

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