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3. Calculate the price of firm ABC with a plowback ratio of 0.4 if its ROE is 20%, Current earnings, E1, will be $5 per

3. Calculate the price of firm ABC with a plowback ratio of 0.4 if its ROE is 20%, Current earnings, E1, will be $5 per share, and the cost of equity is 12%.

4. The beta for GE stock is 0.6 with an expected return of 5%. The risk free rate is

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