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Business, 15.12.2020 16:50 jesussanchez1445
ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 0.20. Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock. At what P/E ratio would you expect ART to sell?
a. 8.33
b. 11.43
c. 14.29
d. 15.25
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ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and...
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