Calculate the PER for the Following Company

question 13

Multiple Choice

Calculate the PER for the following company. It is expected to maintain a payout ratio of 40 per cent of earnings. The appropriate discount rate for this risk class is 10 per cent and the expected growth rate in earnings and dividends is 5 per cent.

• A) 2.67
• B) 8.0
• C) 6.67
• D) 5.0

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Definitions:

Normally Distributed

A statistical term describing a distribution that has a specific bell-shaped symmetry around its mean.

Average Score

A statistical measure that summarizes the central tendency of a data set by dividing the sum of all values by the number of values.

Heritability

The proportion of variation among individuals that we can attribute to genes.

Benjamin Whorf

A linguist and fire prevention engineer known for his hypothesis that language influences thought, known as the Sapir-Whorf hypothesis.