Exhibit 12.3 Use the Information Below for the Following Problem(S)

question 2

Multiple Choice

Exhibit 12.3
Use the Information Below for the Following Problem(S)
Assume that the dividend payout ratio will be 55 percent when the rate on long-term government bonds falls to 9 percent. Since investors are becoming more risk averse, the equity risk premium will rise to 8 percent and investors will require a 7 percent return. The return on equity will be 13 percent.
-Refer to Exhibit 12.3.What is your expectation of the market P/E ratio?

• A) 37.69
• B) 24.92
• C) 58.15
• D) 55.02
• E) 47.82

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The management and care of a patient to combat disease or disorder, including procedures, medications, and other interventions administered by healthcare professionals.

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Areas with limited access to affordable and nutritious food, often characterized by a lack of grocery stores within convenient traveling distance.

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