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You are given the following information about a firm: The growth rate equals 8 per cent; return on assets (ROA) is 10 per cent; the

You are given the following information about a firm: The growth rate equals 8 per cent; return on assets (ROA) is 10 per cent; the debt ratio is 20 per cent; and the stock is selling at $36. What is the return on equity (ROE)?

Given the following information, calculate the market price per share of WAM Inc.

  • Earnings after interest and taxes = $200,000
  • Earnings per share = $2.00
  • Stockholders' equity = $2,000,000
  • Market/Book ratio = 0.20

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