The market capitalization rate for XYZ Corp. is 12%. It has an ROE of 13%...

50.1K

Verified Solution

Question

Finance

image
The market capitalization rate for XYZ Corp. is 12%. It has an ROE of 13% and expected EPS of $5 for next year. If the plowback ratio for the firm is 33%, using the constant growth dividend discount model the P/E ratio for the firm should be: Note: Round the P/E ratio to the nearest second digit after the decimal point. For example, if the calculated P/E is 15.7638, enter your answer as 15.76

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