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Calculate the P / E ratio Baxter has a retention ratio of 5 1 % , a ROE of 1 6 % , and a

Calculate the P

/

E ratio

Baxter has a retention ratio of

51 %,

a ROE of

16 %,

and a discount rate of

15 % .

What is its P

/

E ratio

(

assuming the market correctly values the company

) ?

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