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Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 20%. Its expected earnings this year are $4

Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 20%. Its expected earnings this year are $4 per share. Complete the following table

Answer is complete but not entirely correct.

Plowback Ratio Growth Rate Stock Price P/E Ratio
a. 0 10selected answer incorrect % $5selected answer incorrect 0selected answer incorrect
b. 0.20 10.00selected answer incorrect % $5selected answer incorrect 4selected answer incorrect
c. 0.40 10.00selected answer incorrect % $5selected answer incorrect 12selected answer incorrect

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