Q$6)$ Ratios:

a$)$ A company plowback rate is $b=80\%.$ If the growth rate is $g=4\%$ and the market

capitalization rate is $k=12\%,$ what is the company price$-$to$-$earnings $\frac{P_0}{E_1}$ ratio?

b$)$ Using the information below, calculate the ROE for the company.

Net Profit$/$Pre$-$Tax Profit $=0\mathrm{.}55$

Assets $\frac{?}{?}$ Equity $=3\mathrm{.}27$

Current Ratio $=0\mathrm{.}75$

Pre$-$Tax Profit $\frac{?}{?}$ EBIT $=0\mathrm{.}85$

Sales $\frac{?}{?}$ Assets $=1\mathrm{.}90$

Cash Ratio $=0\mathrm{.}93$

$\frac{P}{E}$ Ratio $=2\mathrm{.}15$

EBIT $\frac{?}{?}$ Sales $=0\mathrm{.}16$