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A firm projects an ROE of 10% and it will maintain a plowback (reinvestment) ratio of 0.2. The firm is expecting earnings of R4 per

A firm projects an ROE of 10% and it will maintain a plowback (reinvestment) ratio of 0.2. The firm is expecting earnings of R4 per a share and the investors expect a return 10% on the stock. Calculate the expected price and P/E ratio of the firm.

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