Question
A firm has expected earnings of $2 per share and a market capitalization rate of 12%. Earnings are expected to grow at 5% per year
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A firm has expected earnings of $2 per share and a market capitalization rate of 12%. Earnings are expected to grow at 5% per year indefinitely. The firm has a 40% plowback ratio. By how much does the firm's ROE exceed the market capitalization rate?
A. 1%
B. 1.5%
C. 2%
D. 0.5%
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
