Question
The market capitalization rate for Admiral Motors Company is 11%. Its expected ROE is 15% and its expected EPS is $7. The firm's plowback ratio
The market capitalization rate for Admiral Motors Company is 11%. Its expected ROE is 15% and its expected EPS is $7. The firm's plowback ratio is 40%.
Required:
a. Calculate the growth rate. (Input your answer as a nearest whole percent.)
b. What will be its P/E ratio? (Do not round intermediate calculations.)
Step by Step Solution
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Step: 1
Given Market capitalization rate 11 Expected ROE Return on Equity 15 Expected EPS Earn...
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Step: 2
Step: 3
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
