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Calculate the P / E ratio Baxter has a retention ratio of 6 3 % , a ROE of 1 5 % , and a

Calculate the P/E ratio
Baxter has a retention ratio of 63%, a ROE of 15%, and a discount rate of 12%. What is its P/E ratio (assuming the market correctly values the company)?
Hint: Remember the earlier class material (also on slide 43--> ROE * retention = growth. Not that this says what the retention ratio is... do you need the retention ratio or something else that can be calculated knowing the retention ratio in the numerator of the P/E equation?
Note: Enter your answer with two decimals.

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