Section C (4 Mark)The following were P/E ratios for some Asian markets in February 1994,...

Section C (4 Mark)

The following were P/E ratios for some Asian markets in February 1994, with relevant information on interest rates and economic growth:

Assuming the dividend payout ratio in each of these countries is 60%, estimate the P/E ratio in South Korea and Thailand, based upon stable growth. (Use a risk premium of 7.5% over the risk-free rate in each country.)