A firm has a stock price of $42.00 per share. The firm's earnings are $85 million, and the firm has 25 million shares outstanding. The firm has an ROE of 18% and a plowback of 35%. What is the firm's PEG ratio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
icon
Related questions
Question
100%

Solve this financial accounting problem

A firm has a stock price of $42.00 per
share. The firm's earnings are $85
million, and the firm has 25 million
shares outstanding. The firm has an
ROE of 18% and a plowback of 35%.
What is the firm's PEG ratio?
Transcribed Image Text:A firm has a stock price of $42.00 per share. The firm's earnings are $85 million, and the firm has 25 million shares outstanding. The firm has an ROE of 18% and a plowback of 35%. What is the firm's PEG ratio?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning