单选题 Study the following information about a stock, calculate the price earning ratio:
Required rate of return: 15%
Constant growth rate: 8%
A return on equity: 12%
The earning retention ratio: 20%
A. 3.8. B. 4.7. C. 5.6.

【正确答案】 C

【答案解析】P/E = Dividend payout ratio/(k-g)
Dividend payout ratio = 1 - retention ratio = 1-0.2=0.8
P/E =0.8×(0.15-0.08)=5.6