Question

Stormy weather has no attractive investment opportunities. Its return on equity equals the discount rate, which...

Stormy weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 5%. Its expected earnings this year are $4 per share.

Complete the following tables:

Plowback ratios Growth Rate % Stock Price P/E ratio

a. 0

b. .30

c. .80

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