Question
Assume of the following information for Design Flaw Engineering, inc. Beta coefficient =1.50. Risk free rate = 6%, expected rate of return on market =
Assume of the following information for Design Flaw Engineering, inc. Beta coefficient =1.50. Risk free rate = 6%, expected rate of return on market = 14%, plowback ratio = 60%, expected ROE (based upon beginning equity) = 20%. Estimate Design Flaw's leading earning multiple (I.e., Its P-E ratio)
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
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