单选题
Use the following data to analyze a stock's price earnings ratio (P/E ratio): The stock's beta is 1.2. The dividend payout ratio is 60%. The stock's expected growth rate is 7%. The risk free rate is 6% and the expected rate of return on the market is 13%. Using the dividend discount model, the expected P/E ratio of the stock is closest to: A. 8.1. B. 10.0. C. 12.0.
【正确答案】
A
【答案解析】k =ER = Rf + Beta(RM - Rf) =0.06+1.2×(0.13-0.06)=0.144 Dividend payout ratio = 0.60 P/E = div payout/(k-g)=0.6/(0.144-0.07)=8.1