单选题 Estimate an earnings multiplier for ABC Company, assuming a dividend payout ratio of 50%, a required return of 12% , and a growth rate of 7%.
A. 10.00. B. 12.00. C. 15.57.

【正确答案】 A

【答案解析】The P/E ratio is estimated as the dividend payout ratio divided by the required return minus the growth rate. In this case, 0.50/(0.12-0.07)=10.00.