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?

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?
Transcribed Image Text: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?
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