SLYMN Enterprises has a P/E ratio of 12.2 and a dividend payout ratio of 45%. If its equity cost of capital is 12.9%, what growth rate is its P/E ratio consistent with? The growth rate is%. (Round to one decimal place.)

SLYMN Enterprises has a P/E ratio of 12.2 and a dividend payout ratio of 45%. If its equity cost of capital is 12.9%, what growth rate is its P/E ratio consistent with? The growth rate is%. (Round to one decimal place.)

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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SLYMN Enterprises has a P/E ratio of 12.2 and a dividend payout ratio of 45%. If its equity cost of capital is 12.9%,
what growth rate is its P/E ratio consistent with?
www
The growth rate is%. (Round to one decimal place.)

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