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Next year, BHH Co. is expected to pay a dividend of $3.03 per share ...

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Question

Finance

Next year, BHH Co. is expected to pay a dividend of $3.03 per share
from earnings of $5.09 per share. The equity cost of capital for BHH is
12.31%. What should BHH's forward P/E ratio be if its dividend
growth rate is expected to be 3.93% for the foreseeable future?
BHH's forward P/E ratio should be
(Round to two
decimal places.)
image

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