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need help on E!! the investor's required rate of retum is 15 percent, the expected level of earnings at the end of this year (Ex)

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the investor's required rate of retum is 15 percent, the expected level of earnings at the end of this year (Ex) is $8, the retention ratio is 40 percent, the return on equity (ROE) is 19 percent (that is, it can earn 19 percent on reinvested earnings), and similar shares of stock sell at multiples of 8.108 times earnings per share. Questions: Determine the expected growth rate for dividends. b. Determine the price earnings ratio (PIE;). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (PIE;) and stock price if the firm could earn 24 percent on reinvested earnings (ROE)? f. What does this tell you about the relationship between the rate the firm can earn on reinvested earnings and P/E ratios? B.108 (Round to three decimal places.) c. What is the stock price using the P/E ratio valuation method? $ 64 86 (Round to the nearest cent.) d. What is the stock price using the dividend discount model? $ 64.86 (Round to the nearest cent.) e. Using the dividend discount model, what would be the stock price if the firm could eam 24% on reinvested earnings (ROE)? s (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer, 2 parts remaining CA

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