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Suppose a company retains 60 percent of its earnings for reinvesting in profitable projects. Its return on equity (ROE) is 12 percent. If the required

Suppose a company retains 60 percent of its earnings for reinvesting in profitable projects. Its return on equity (ROE) is 12 percent. If the required rate of return on the company's share is 15 percent, what is the price-earnings ratio of this company?

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