Question
The market capitalization rate on the stock of New York Company is 10%. Its expected ROE is 10%, and its expected EPS is $4. If
The market capitalization rate on the stock of New York Company is 10%. Its expected ROE is 10%, and its expected EPS is $4. If the firm's plowback ratio is 60%, what will be its P/E ratio?
A) 7.14
B) 25
C) 10
D) 17.14
E) None of the above
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
