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AG is currently selling for $38.50, with EPS and DPS of $1.36 and 0.91 , respectively. The company's P/E is 28.3,P/B is 7.1 , and

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AG is currently selling for $38.50, with EPS and DPS of $1.36 and 0.91 , respectively. The company's P/E is 28.3,P/B is 7.1 , and P/S is 2.9 . The ROE is 27% and the profit margin on sales is 10.24%. The Treasury bond rate is 4.9%, the market risk premium is 5.5%, and AG's beta is 1.2 . A. What is AG's required rate of return based on the CAPM? CaPM=4.9+1.2(5.5)=11.50% B. Assume that the dividend and earnings growth rates are 9%. What is the trailing P/E,P/B, and P/S multiples given the required rate of return and current values of the dividend payout ratio, ROE, and profit margin

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