QUESTION FIVE [15] 5.1. A firm projects an ROE of 10%. It will maintain a plowback (reinvestment) ratio of 0.2. The firm is expecting earnings of R 4 per share and investors expect a return of 10% on the stock. Calculate the expected price and P/E ratio of the firm (9) 5.2 (6) List the most important factors that would influence an investment analyst in the rating of P/E ratios. END OF LONG-TERM FINANCIAL MANAGEMENT ASSIGNMENT