单选题 An analyst gathered the following data for the Parker Corp. for the year ended December 31, 2008:
EPS₂₀₀₈=$1.75
Dividends₂₀₀₈=$1.40
Beta_parker=1.17
Long-term bond rate = 6.75%
Rate of return S&P₅₀₀=12.00%
The firm has changed its dividend policy and now plans to pay out 60% of its earnings as dividends in the future. If the long-term growth rate in earnings and dividends is expected to be 5% , the appropriate price to earnings (P/E) ratio for Parker will be:
A. 7.98. B. 9.14. C. 7.60.