Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 5%. Its expected earnings this year are $2 per share. Complete the following table. (Leave no cells blank. Enter a zero, wherever necessary. Do not round intermediate calculations. Round growth rate to two decimal places.)   Plowback Ratio Growth Stock PE Ratio 0 0% 40.00 20.00 .20 1.00%     .70 3.50

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Q: Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount…

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A:

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