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 Aberdeen Wholesale Company is 8%. Its expected ROE...

60.1K

Verified Solution

Question

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

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

60.1K

Verified Solution

Question

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 _________.26.7817.2823.3366.67

Answer & Explanation Solved by verified expert

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Transcribed Image Text

Other questions asked by students

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