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Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be $ 5 . 0 0 per

Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be $5.00per share. The company plows back 50%of its earnings and if the Chief Financial Officer (CFO)estimates that the company's return on equity (ROE)is 16%.Assuming the plowback ratio and the ROE are expected to remain constant forever:
Suppose that you are confident that 10%is the required rate of return on the stock. What does the market price of $50.00per share imply about the markets estimate of the companys expected return on equity? (please give a number)
*Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%,then enter 0.0600.Answer is not -0.4100,-0.4200,0.3000or 0.1300

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