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A company has an ROE of 16% and a plowback ratio of 30%. The market capitalization rate is 15%. a) If the coming year's earnings are expected to be $2 per share, at what price will the stock sell? b) What is your best estimate of the stock price in 2 years? c) Calculate the P/E ratio aned explain how and why the P/E ratio relates to the growth expectations of the firm. k E b ROE Div1 Ik 8 g Vo DIV? k g V2 P IE E P/E