Question
Lee Sports projects an ROE of 20%, and it will maintain a plowback ratio of 0.3. its earnings this year will be $2/share. Investors expect
Lee Sports projects an ROE of 20%, and it will maintain a plowback ratio of 0.3. its earnings this year will be $2/share. Investors expect a 12% rate of return on the stock.
a) What is the price and P/E ratio?
b) What is the PVGO?
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
