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The market capitalization rate on the stock of a firm is 10%. Its expected ROE is 12%, and its expected EPS is $5. If the

The market capitalization rate on the stock of a firm is 10%. Its expected ROE is 12%, and its expected EPS is $5. If the firm's plowback ratio is 70%, its P/E ratio will be _________.

	A.	18.75
	B.	17.5
	C.	22.15
	D.	10.33

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