Character in this case: Admiral Motors Company Adequate information: Market Capitalization Rate = 8% Expected ROE = 10% Expected EPS = $5 Firm's plowback ratio = 60% To construct: P/E ratio Introduction: P/E ratio is the ratio of a company's stock price to the company's earnings per share. The ratio is used in valuing companies.

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Chapter 13, Problem 9PS

Summary Introduction

Character in this case:

Admiral Motors Company

Adequate information:

Market Capitalization Rate = 8%

Expected ROE = 10%

Expected EPS = $5

Firm's plowback ratio = 60%

To construct:

P/E ratio

Introduction:

P/E ratio is the ratio of a company's stock price to the company's earnings per share. The ratio is used in valuing companies.

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