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TAR has come out with a new and improved product. As a result, the firm projects an ROE of 13%, and it will maintain a

TAR has come out with a new and improved product. As a result, the firm projects an ROE of 13%, and it will maintain a plowback ratio of 53. Its earnings this year will be $3 per share. Investors require a 12% rate of return on the stock. At what P/E would you expect TAR to sell? Keep two decimal places.

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