Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider company x with an roe of 20% and a risk-a

Consider company X with an ROE of 20% and a risk-adjusted discount rate of 15%....

80.2K

Verified Solution

Question

Finance

Consider company X with an ROE of 20% and a risk-adjusted discount rate of 15%. The average price-earnings ratio of the companys peers that belong to the same industry is 8. A manager of company X wants to make its price-earnings ratio the same as the industry average. Then, what is the required plowback ratio?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

a. Describe the preparation of 2 liters of 0.1 M Glutamate buffer, pH 10.0. You have...

Chemistry
Q

different styles of communication would benefit different types of work environments and positions. write about why and...

Psychology
Q

Design voltage x4 multiplier(Voltage quadrupler) if rms voltage of AC is 220V and frequency is 60Hz

Electrical Engineering
Q

xi yj zk The electric field intensity in a region of space can be given...

Physics
Q

The figure shows two identical parallel plate capacitors connected to a battery with switch S...

Physics
Q

O Single Correct MCQ A student measured the length of a rod and wrote it...

Physics
Q

3 2 nts eBook Print eferences A machine costing 211 600 with a four year...

Basic Math
Q

11 Use the formula from above to find the Interest rate 1 54 P 450...

Algebra
Q

.

Accounting
Q

The following information is provided from the accounting records of Suzie Ltd for the financial...

Accounting
Q

En un sistema de costeo basado en actividades, la reduccin de costos se logra identificando...

Accounting
Q

Suppose Contrail Air, Inc. is going to repurchase $22,800 shares of stock. The market value...

Finance