Wilson corporation anticipates a 10 percent growth in net

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Wilson Corporation anticipates a 10 percent growth in net income and dividends.

Next year, the company expects earnings per share of $5 and dividends per share of $3. Wilson will be having its first public issuance of common stock. The stock will be issued at $40 per share.

(a) What is the P/E ratio?

(b) What is the required rate of return on the stock?

Reference no: EM13484565

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