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please if you know how to did that help me Even Better Products has come out with a new and improved product. As a result.
please if you know how to did that help me
Even Better Products has come out with a new and improved product. As a result. the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its projected earnings are $3 per share. Investors expect a 14% rate of return on the stock a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places) c. What would be the P/E ratio and the present value of growth opportunities if the firm planned to reinvest only 20% of its earnings? (Do not round intermediate calculations. Round your answers to 2 decimal places.)Step by Step Solution
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