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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 PE ratio
Baxter has a retention ratio of a ROE of and a discount rate of What is its ratio assuming the market correctly values the company
Hint: Remember the earlier class material also on slide 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 PE equation?
Note: Enter your answer with two decimals.
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