The Dividend Payout Ratio for the Aggregate Market Is 55

question 50

Multiple Choice

The dividend payout ratio for the aggregate market is 55 percent, the required rate of return is 15 percent, and the expected growth rate for dividends is 7 percent. Compute the current earnings multiple.

• A) 3.93
• B) 78.6
• C) 6.88
• D) 39.3
• E) 7.89