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EPS = $3 ROE = 25% Beta = 3 plowback = 90% R(f) = 2% R(m) = 9% MRP = 7% ( R(m) - R(f)

EPS = $3

ROE = 25%

Beta = 3

plowback = 90%

R(f) = 2%

R(m) = 9%

MRP = 7% ( R(m) - R(f) )

Intrinsic Value = $73.50

Today's Closing Price = $60

Trailing P/E Multiples = 24.50

Forward P/E Multiples = 20

PVGO = 57.52

Question - What is the expected return when initial margin is 25%, maintenance is 20% and rate on margin loan is 5% for the next 12 months?

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