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Calculate the P / E ratio Baxter has a retention ratio of 6 2 % , a ROE of 1 7 % , and a

Calculate the P/E ratio
Baxter has a retention ratio of 62%, a ROE of 17%, and a discount rate of 13%. What is its PE 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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