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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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