The market capitalization rate on the stock of Aberdeen Wholesale Company is 12%. Its expected ROE is 14%, and its expected EPS is $3. If the firm's plow back ratio is 50%, its P/E ratio will be a. 6.67. b. 16.67. c. 20.00. d. 10.00.

The market capitalization rate on the stock of Aberdeen Wholesale Company is 12%. Its expected ROE is 14%, and its expected EPS is $3. If the firm's plow back ratio is 50%, its P/E ratio will be a. 6.67. b. 16.67. c. 20.00. d. 10.00.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

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Solve this accounting problem

The market capitalization rate on the stock of
Aberdeen Wholesale Company is 12%. Its expected
ROE is 14%, and its expected EPS is $3. If the firm's
plow back ratio is 50%, its P/E ratio will be
a. 6.67.
b. 16.67.
c. 20.00.
d. 10.00.

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