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XYZ stock has an expected ROE = 9% per year, expected EPS of $6, expected dividends of $2 per share. Its discount rate is 18%.
XYZ stock has an expected ROE = 9% per year, expected EPS of $6, expected dividends of $2 per share. Its discount rate is 18%. What comes closest to its justified P/E ratio?
2.5
2.8
4.1
3
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