Exhibit 12.9 Use the Information Below for the Following Problem(S)

question 86

Multiple Choice

Exhibit 12.9
Use the Information Below for the Following Problem(S)
The aggregate market currently has a retention ratio of 60 percent, a required rate of return of 12 percent, and an expected growth rate for dividends of 4 percent.
-Refer to Exhibit 12.9.If the payout ratio changes to 50 percent,but there are no other changes,what will be the new P/E?

• A) 3.25
• B) 4.16
• C) 5.75
• D) 6.25
• E) 7.67

---

Definitions:

Right-sided Heart Failure

Right-sided heart failure occurs when the right ventricle of the heart is unable to pump blood efficiently, often leading to fluid buildup in the body.

Peripheral Edema

Swelling caused by an accumulation of fluid in the tissues, typically occurring in the lower legs and ankles.

Basilar Crackles

Fine or coarse sounds heard in the lower part of the lungs with a stethoscope, usually indicating fluid in the airways or atypical airway popping open, often associated with conditions like pneumonia or heart failure.

Myocardial Blood Flow

The amount of blood flowing through the muscle tissue of the heart, critical for its function and health.