A company just paid a dividend of $1 per share. If the dividend growth rate is projected at 5 percent, the payout ratio is 50 percent and the discount rate is 10 percent which of the following statements is are correct?
STATEMENT I The stock price is expected to increase by 10 percent in the coming year.
STATEMENT II The stock's P/E ratio based on current earnings would be 10.5
A l only
B. ll only
C Both l and it
D. Neither nor
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Option c both I and it ok this is write answer
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