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a. Calculate the price of a fim with a plowback ratio of. 60if its ROE is 20%. Current earnings E. will be $5 per share,
a. Calculate the price of a fim with a plowback ratio of. 60if its ROE is 20%. Current earnings E. will be $5 per share, and k=12.5%. b. What if ROE is 10%, which is less than the market capitalization rate? Compare the firms price in this instance to that of a frm with the same ROE and E1 but a plowback ratis of b=0
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
