Question
Consider company X with an ROE of 20% and a risk-adjusted discount rate of 15%. The average price-earnings ratio of the companys peers that belong
Consider company X with an ROE of 20% and a risk-adjusted discount rate of 15%. The average price-earnings ratio of the companys peers that belong to the same industry is 8. A manager of company X wants to make its price-earnings ratio the same as the industry average. Then, what is the required plowback ratio?
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Commodity Market Trading And Investment
Authors: Tom James
1st Edition
1137432802, 978-1137432803
