None Investors in Meridian Technologies' stock require a return of8.2%. If the company simply earns the cost of capital on its newinvestments, what is the stock's P/E?

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Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 5MC

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Investors in Meridian Technologies' stock require a return of 8.2%. If the company simply earns the cost of capital on its new investments, what is the stock's P/E?