单选题 Assume the following information for a stock:
Beta coefficient = 1.50
Risk - free rate = 6%
Expected rate of return on market = 14%
Dividend payout ratio = 30%
Expected dividend growth rate = 11%
The estimated earnings multiplier (P/E ratio) is closest to:

A、 10.00.
B、 3.33.
C、 4.29.

【正确答案】 C

【答案解析】P/E = D/E ₁ /(k-g)
D/E ₁ = Dividend payout ratio = 0.3
g=0.11
k=6+1.5×(14-6)=18%
P/E=0.3/(0.18-0.11)=0.3/0.07=4.29