单选题 Baker Computer earned $6.00 per share last year, has a retention ratio of 55 percent, and a return on equity (ROE) of 20 percent. Assuming their required rate of return is 15 percent, how much would an investor pay for Baker on the basis of the earnings multiplier model?
A. $173.90.
B. Need growth rate to complete calculation.
C. $74.93.

【正确答案】 C

【答案解析】g=Retention × ROE=0.55×0.2=0.11
P/E=0.45/(0.15-0.11)=11.25
Next year's earnings E₁=E₀×(1+g)=6.00×1.11=$6.66
Next years dividend (D₁)=E₁×Payout ratio =$6.66×0.45=$3.00
P=D₁/(k-g)=$3.00/(0.15-0.11)=$74.93