Financial Accounting A firm has a stock price of $56.00 per share. Thefirm's earnings are $70 million, and the firm has 20million shares outstanding. The firm has an ROE of15% and a plowback of 40%.What is the firm's PEG ratio?

Step 1: Price-to-Earnings (P/E) ratio: The P/E ratio is given by:P/E=Price per share/Earnings per…

Answered: A firm has a stock price of $56.00 per…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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A firm has a stock price of $56.00 per share. The firm's earnings are $70 million, and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback of 40%. What is the firm's PEG ratio?