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For the open response questions, please upload an excel file for the question ( show excellent work) Question 28 A company has a plowback ratio

For the open response questions, please upload an excel file for the question ( show excellent work)

Question 28

A company has a plowback ratio of 0.7 and the required rate of return on their stocks is 16%. Currently, their stock has an intrinsic value of $42. If the company were to lower its plow back ratio to 0.6, the price of their stock would be expected to drop to $40.

What are the companys ROE and EPS?

What is the PVGO when the stock price is at $40?

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