Stock xyz has a roe of 10 and a dividend payout ratio of 80, Ask an Expert

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Stock XYZ has a ROE of 10% and a dividend payout ratio of 80%. The firm has a beta of 1.3. Assume an equity risk premium of 6% and a risk free rate of 2.5%.

Calculate the justified leading P/E Ratio of Stock XYZ using the constant growth dividend discount model.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92804539

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