Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GS just paid a dividend of $1.4. The plowback ratio is 30%. GS has a beta of 1.5, the risk-free rate is 4%, the expected

GS just paid a dividend of $1.4. The plowback ratio is 30%. GS has a beta of 1.5, the risk-free rate is 4%, the expected market return is 18%. The current price $7.01. What is the ROE?

0.12

0.35807

0.13

0.30673

0.14

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions