Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
10th Edition
ISBN: 9780077835422
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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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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Chapter 13 Solutions

Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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