Question
The market capitalization rate (required return) on the stock of SMBC Company is 12%. Its expected ROE is 9%, and its expected EPS is $4.
The market capitalization rate (required return) on the stock of SMBC Company is 12%. Its expected ROE is 9%, and its expected EPS is $4. The firm's plowback ratio is 77%. What should be the firm's P/E ratio?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
