Business, 16.12.2019 19:31, shayhiddinovxasan93

Abc stock has an expected roe of 12% per year, earnings per share of $2, and dividends of $1.5 per share. its market capitalization rate is 10% per year.

a. calculate the p/e ratio.

b. if the plowback ratio were 40%, calculate the p/e ratio.

c. explain the change in the p/e ratio between (a) and (b).

Answers: 2

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Abc stock has an expected roe of 12% per year, earnings per share of $2, and dividends of $1.5 per s...