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The earnings multiplier model, derived from the dividend discount model, expresses a stock’s P/E ratio (P0/E1) as the : A. expected dividend payout ratio divided by the sum of the expected dividend growth rate and the required return on equity. B. expected dividend in one year divided by the difference between the required return on equity and the expected dividend growth rate. C. expected dividend payout ratio divided by the difference between the required return on equity and the expected dividend growth rate. |