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Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 11 percent. Its expected earnings this year are
Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 11 percent. Its expected earnings this year are $6 per share. Find the P/E ratio for plowback ratio of zero (First figure out the growth rate of dividends and the stock price).
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