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  3. investors in sassy sausage require a return of 14%

Investors in Sassy Sausage require a return of 14%. Its most recent ROE was 11.25%,...

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Accounting

Investors in Sassy Sausage require a return of 14%. Its most recent ROE was 11.25%, which
you expect will be the same in the future. Its most recent earnings per share were $5.00,
which you expect to grow at the same rate as the dividends. The firm's retention ratio is 80%.
A) What should the P/E ratio of the firm be?(Hint: You will need to find today's price.)
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