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Business, 24.06.2021 16:40 biglue19

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?

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ART Inc. has come out with a new and improved product. As a result, the firm projects an ROE of 25%...
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