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The P/E ratio for Mailbu Boats (MBUU) is 13.24 and the expected growth rate is 16%. Assume that the plowback ratio is 80%. What is

The P/E ratio for Mailbu Boats (MBUU) is 13.24 and the expected growth rate is 16%. Assume that the plowback ratio is 80%.

  • What is MBUU's current required rate of return (market capitalization rate)?
  • What is MBUU's current ROE?
  • If MBUU decreases the plowback ratio, what will happen to P/E?

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