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3. You are told that nominal GDP will increase by about 10 percent next year. Using Exhibit 12.13… 1 answer below » 3. You are told that nominal GDP will increase by about 10 percent next year. Using Exhibit 12.13 and the regression equation, what increase would you expect in corporate sales? 4. Currently, the dividend-payout ratio ( D/E ) for the aggregate market is 60 percent, the re- quired return ( k ) is 11 percent, and the expected growth rate for dividends ( g ) is 5 percent. a. Compute the current earnings multiplier. b. You expect the D/E payout ratio to decline View complete question » 3. You are told that nominal GDP will increase by about 10 percent next year. Using Exhibit 12.13 and the regression equation, what increase would you expect in corporate sales? 4. Currently, the dividend-payout ratio ( D/E ) for the aggregate market is 60 percent, the re- quired return ( k ) is 11 percent, and the expected growth rate for dividends ( g ) is 5 percent. a. Compute the current earnings multiplier. b. You expect the D/E payout ratio to decline to 50 percent, but you assume there will be no other changes. What will be the P/E ? c. Starting with the initial conditions, you expect the dividend-payout ratio to be constant, the rate of inflation to increase by 3 percent, and the growth rate to increase by 2 per- cent. Compute the expected P/E. d. Starting with the initial conditions, you expect the dividend-payout ratio to be constant, the rate of inflation to decline by 3 percent, and the growth rate to decline by 1 percent. Compute the expected P/E. View less » Dec 29 2015 10:57 AM
