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The market capitalization rate on the stock of Aberdeen Wholesale Company is 8%. Its expected ROE...

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Finance

The market capitalization rate on the stock of AberdeenWholesale Company is 8%. Its expected ROE is 10%, and its expectedEPS is $3. If the firm's plowback ratio is 65%, its P/E ratio willbe _________.

26.78

17.28

23.33

66.67

Answer & Explanation Solved by verified expert
4.1 Ratings (881 Votes)
Information provided Market capitalization rate 8 Return on equity 10 Expected EPS 3 Plowback ratio 65 Dividend payout ratio 1 Plowback ratio 1    See Answer
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The market capitalization rate on the stock of AberdeenWholesale Company is 8%. Its expected ROE is 10%, and its expectedEPS is $3. If the firm's plowback ratio is 65%, its P/E ratio willbe _________.26.7817.2823.3366.67

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