Question
(15 points question total) Elon Mining Inc. is currently reinvesting 50% of its net income back into the business and delivers a return on equity
(15 points question total) Elon Mining Inc. is currently reinvesting 50% of its net income back into the business and delivers a return on equity (ROE) of 12% with a net profit margin of 8%. The company faces a cost of equity (re) of 10%. Based on the previous information please answer the following questions:
(a) (3 points) What is Elon Mining Inc.'s current PD ratio (price per share divided by dividend per share) equal to?
(b) (3 points) What is Elon Mining Inc.'s current PE ratio equal to?
(c) (3 points) What is Elon Mining Inc.'s PB ratio equal to?
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