Art inc. has come out with a new and improved product. as a result, the firm projects an roe of 25% a year until the end of year 3 and 15% a year afterwards, and it will maintain a plowback ratio of 20%. its earnings in the coming year, i. e., e1, will be $3 per share. investors expect a 12% rate of return on the stock. what would be its p0/e1 ratio?

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?