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8. The market capitalization rate on the stock of Aberdeen Wholesale Company is 14%. Its expected ROE is 20% and its expected EPS is $5.00.

8. The market capitalization rate on the stock of Aberdeen Wholesale Company is 14%. Its expected ROE is 20% and its expected EPS is $5.00. If the firm's plow-back ratio is 30%, its P/E ratio is

  1. 8.75
  2. 11.67
  3. 19.23
  4. 24.15
  5. None of the above

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