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Hello, I have been able to work out my homework question except for 2 small parts (with question marks)... Stormy Weather has no attractive investment
Hello,
I have been able to work out my homework question except for 2 small parts (with question marks)...
Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 5%. Its expected earnings this year are $3 per share. Complete the following table.
Plowback Ratios Growth Rate Stock Price P/E Ratio
a. 0 0 % $60 20
b. 0.40 ? % $60 20
c. 0.80 ? % $60 20
Not sure where my answer is going wrong?
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